Dollars and Democracy
By David Jessup, New Economy Information Service, November 10, 1999In This Document: Ten years ago, the fall of the Berlin Wall marked the victory of democracy and signaled the beginning of a post-Cold War explosion in trade and investment. Yet so far, the developing democracies seem to be reaping the least benefit from the global economic boom. This is the major finding in a new paper to be released by the New Economy Information Service, a non-profit organization which explores the effects of rapid economic change on work life, families, and communities. The paper reveals an unsettling pattern: as a group, the democratic countries in the developing world are losing ground to more authoritarian countries when it comes to competing for trade and investment dollars.
Is the policy of "Trade-Not-Aid" failing struggling democracies? Are foreign purchasing and investment decisions by U.S. corporations inadvertently undermining these countries' chances of survival? Do the developing democracies need to develop a greater group consciousness to explore ways that would help them compete, including support for global trade rules and international aid criteria that take democracy into account?
On the eve of a new round of trade talks by the World Trade Organization (WTO), when U.S. political parties are groping for a new consensus on trade policy, the findings of this research will add new questions to the debate.
Executive Summary
Full Report (PDF) Press Release -- November 10, 1999
Developing Democracies Would Benefit From WTO-Labor Links, Study Says -- November 29, 1999
Discussion Forum on "Dollars and Democracy"