New hope for Doha?

It seems, according to some of the Melbourne newspapers, that there may yet be a round of free trade agreements that come out of Doha. These will, they say, help the world's poorest people. So, at least, the leaders say.

Now, in theory, free trade works well, at least the way it was taught in uni. But there is a real problem with the way it was taught at uni - what free trade does is it increases the total amount of 'utility'. It doesn't say anything about how that utility is distributed. For the best outcomes, you need to start with a largely level playing field. And economics doesn't take power into account at all.

This isn't an easy issue, and it's easy for it to get really emotional - discussions about child labour, for example, often miss the point. There are different types of child labour - Jomo's book on child labour in Malaysia makes that clear. The work of kids in flour factories, where they can do nothing else, is fundamentally different from the apprenticeship children serve in a motor repair workshop, particularly if it is family-owned. The former denies them the right to education, to play, and to meaningful work prospects. The latter doesn't. It is often combined with formal education, as well as serving as a career path of its own, enabling the adult to follow open an independent business etc.

What robs children of their childhood is not child employment. This is a symptom of child poverty, excruciating in some instances. And this is what needs to be tackled.

It is the same with free trade. The problem is not free trade. The problem is imbalance of power, and in particular, money (not wealth, some of the poorest countries are some of the wealthiest in terms of natural resources). The current free trade system is not helping. It needs to be seriously revived - in the interests of all. Because the economist's arguments about protectionism are sound, to some degree - driven a Proton lately?

But they should only have force in as far as they've shown themselves able to fulfill their promises, particularly the promises that they make to the poorest, the worst off. And right now, they're failing badly.