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RE: British IT workers want Indians to go home



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IPI_Marker

Hi Kartik,
> The free trade argument works, but not
> without
> access
> to technology and two-way free markets.

I think you are engaging in a circular argument! You are saying that
free trade works but it requires technology! And where does the
technology comes from? From heaven! It comes because people are allowed
to innovate and profit from these innovations! Lots of technological
innovation happened in the West because of expansion in the free trade.


And by the way I do not think that free trade will cause convergence in
the wages of the people in different countries. It depends upon the
policies of the countries in question. If one country, say India, has
high transaction costs (unstable democracy, high taxation, unclear
propery rights and titles, lack of education) and other country like US
have low transaction costs then the advantage will go the US. There is
no doubt about it! Trade and commerce do not happen in vaccum! They
require markets, property rights protection, law and order
infrastructure!

As long as Indian Govt. and its people are obssesed with wealth
transfer rather on creating conditions for generating wealth itself
there is no hope!

Regards,
Ashish
         
--- Kartik Ramachandran <ramachan@grinnell.edu> wrote:
> ---------------------------------------------------------------------
> Please help make the Manifesto better, or accept it, and propagate
> it!
> ---------------------------------------------------------------------
> 
> IPI_Marker
> 
> > When
> >a poor country trades with a rich country, the wage rate of the poor
> country
> >converges with the rich country.
> 
> I think the author should clarify whether "convergence" in this
> regard is
> absolute or conditional. The free trade argument works, but not
> without
> access
> to technology and two-way free markets.
> 
> Kartik Ramachandran



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