Pambazuka News | The road to the WTO
Fair trade is usually held up as the alternative to this global economic system, but in reality, fair trade means a number of different things. Economists around the globe have yet to all agree on one perfect solution to current economic challenges, should one even exist. They work within a number of frameworks, advocating a series of options. The following theories are offered as substitutions to free trade:
Tobin Tax is a suggested tax of 0.05 to 1.0% on all currency trade across international borders. The goal of the tax would be to increase international currency stability, accomplished by taxing foreign exchange transactions.
Balanced trade requires that nations attempt to not run large trade deficits, through even reciprocal trade patterns. Should a country run a deficit they must find a way to balance it out, otherwise they would risk sanctions or quotas. The goal would be to reduce irregularities and large upswings and downswings in the market. This would also be done by mandating economic changes on a generational scale; this means that changes would be implemented slowly and gradually, so that people are not forced into disastrous changes. Another goal of balanced trade it to treat economic displacement just as natural disasters are treated – currently no provisions are made to those people who fall victim to economic disasters, and balanced trade calls for this stipulation.
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