Wednesday, April 26, 2006

Exclusiveness of what?

In an article, Robert B. Reich says that most economists and policy makers now accept David Ricardo's argument that the gains from trade exceed the losses regardless of whether trading partners are more or less economically advanced, as each nation shifts to where it has a comparative advantage. The new and more interesting debate, he continues, is about how the benefits of trade should be shared.

I am a little skeptical about “Free Trade Agreements (FTAs)”, because they are not free at all, as they should be. But, there is no doubt that this is the direction countries should follow. This mean that a better a country could be, is positive related to the number of FTAs a country has. The main example is Chile, which has FTAs with USA, Mexico, Canada, European Union, Korea, Central America and China, and soon will have with Japan. Looking only at the benefits of its FTA with USA, one can see that the bilateral commerce between Chile and USA has grown in 36.6% in the two years of the agreement, the exports to USA have grown in 35.1% with respect to 2004 and the imports have grown in 38.8%. Other benefits have been the diversifications of products send to USA, mainly from the small and medium enterprises.

The benefits are really enormous and certainly these have helped Chile a lot to reach the second place in GDP per capita among 19 Latin-American countries with US$ 12.737 (only Argentina is ahead with US$ 14.838). We (Bolivia) are also in the second place, but counting backwards, we occupy position 18th with US$ 2.879 beating Haiti only. Of course there are some other structural reasons that explain this, but we are a closed economy an that is a binding constraint for our development.

So, I really can not understand this discussion about the CAN (Comunidad Andina de Naciones), TLC (Tratado de Libre Comercio) with USA and TCP (Tratado Comercial de los Pueblos). We are really mistaking the way by thinking that they are exclusive among each other. Of course they are not, we have to continue in the CAN, we have to sign a FTA with USA and it is a good thing to have also this TCP with Venezuela and Cuba. And if tomorrow we have to sign a FTA with Timbucktu, ok let’s do it. But stop this discussion about exclusiveness. We and our government looks like “perro del hortelano” by saying to other governments what they have to do. Concentrate in what we can do and how we can enjoy the benefits of commerce.

It is a shame that we are not looking at the economic benefits of a situation and looking only at the political benefits. Are we going to enjoy more welfare with those political benefits? Could somebody explain how these political benefits can be translated in economic benefits for the poor? Paraphrasing what Viva Bolivia! said: Where are the economists in Bolivia?


Anonymous said...

The answer to your last question is: Chile (like yourself), USA, England, Germany, and a couple of adventurous are living in even more remote countries.

Diego A. Escobari said...

El anterior comentario (anonimo) nos esta dando en el ojo. Esta hablando de los Bolivian-econ-bloggers. Simplemente estamos confirmando la Tiebout Hypothesis: "voting with your feet". Como no estamos de acuerdo con las politicas economicas en Bolivia (TLC, TCP, etc), simplemente "elegimos" (votamos) vivir donde las politicas son mas acordes a lo que queremos. Obviamente, desde lejos queremos que las cosas mejoren para Bolivia (y eventualemnte volveremos a trabajar). En todo caso la pregunta era: where are the economists IN Bolivia? que es justamente lo que queremos saber, y no: Where are the Bolivian economists?


Briegel Busch said...

Why do you think Bolivia is a closed economy?

It seems to me the economy is quite open to trade since the "Nueva Política Económica" started.

Briegel Busch said...


It is not polite to leave the comments of your readers without an answer.

Anonymous said...

The Center for Media Research has released a study by Vertical Response that shows just where many of these ‘Main Street’ players are going with their online dollars. The big winners: e-mail and social media. With only 3.8% of small business folks NOT planning on using e-mail marketing and with social media carrying the perception of being free (which they so rudely discover it is far from free) this should make some in the banner

and search crowd a little wary.


Anonymous said...

Often we forget the little guy, the SMB, in our discussions of the comings and goings of the Internet marketing industry. Sure there are times like this when a report surfaces talking about their issues and concerns but, for the most part, we like to talk about big brands and how they do the Internet marketing thing well or not so well.

Anonymous said...

I just discovered the website who reviews about
home business ideas

If you want to know more here it is
home business opportunity

Anonymous said...

It is your responsibility whether you will join or not. There are lots of sports betting websites that offers free registration and offers also free points to attract newcomers. You are also not restricted; you can place your bet wherever you are; Some website are customized to suit your language and understand the things and happenings on the game, also included the cash converted to your currency, so you know how much you bet or the equivalent of your bet on your currency. But then again, as you enjoy the online sports betting, you are responsible on what might be the outcome of your transactions online. [url=]bet online[/url] [url=]bet online[/url] [url=]bet online[/url] [url=]apuestas[/url] [url=]jouer en ligne[/url] [url=]bet online[/url] [url=]bet online[/url] [url=]bet online[/url] [url=]bet online[/url] [url=]bet online[/url] [url=]bet online[/url] [url=]bet online[/url] [url=]bet online[/url] [url=]bet online[/url] [url=]bet online[/url] The line shows that San Diego is -3, with a total of 44-points. The reason why there is a line is because one team is going to be favored over another to win the game. This way the oddsmakers can level the playing field, making the bet attractive to both sides. In this case San Diego is the favorite and New England is the underdog. This means that if you are placing your bet on San Diego, the Chargers will have to beat the Patriots by at least 3 points for you to win the bet. If they lose the game or win by less than 3, you lose your bet. The second number shows 44, which is the over/under score. By betting the over, you are putting money on the possibility that the sum of both team’s score will be greater than 44-points at the end of the game.

Anonymous said...

A comprehensive good physical condition program tailored to an own resolve very likely nave on sole or more definitive skills, and on age-[3] or health-related needs such as bone health.[4] Many sources[citation needed] also cite disposition, social and heated strength as an significant vicinity of all-inclusive fitness. This is over presented in textbooks as a triangle made up of three points, which impersonate natural, sentimental, and psychotic fitness. Physical well-being can also forestall or treat many persistent well-being conditions brought on by detrimental lifestyle or aging.[5] Working pass‚ can also serve people sleep better. To visit healthy it is notable to agree in navy surgeon activity.

Certain or task-oriented [url=]fitness[/url] is a person's talents to depict in a identified with activity with a sound expertness: as pattern, sports or military service. Individual to training prepares athletes to appear as fully in their sports.

Examples are:

400 m sprint: in a sprint the athlete requirement be trained to work anaerobically all the way through the race.
Marathon: in this wrapper the athlete have to be trained to work aerobically and their endurance requisite be built-up to a maximum.
Scads alight fighters and police officers sustain regular aptness testing to end if they are capable of the physically hard tasks required of the job.
Members of the Joint States Army and Army Native Guard necessity be masterly to pass the Army Palpable Health Test (APFT).