Among the Fringers
With enemies like these, who needs friends?

By Aaron Lukas, an analyst at the Cato Institute's Center for Trade Policy Studies
May 21, 2001 10:15 a.m.

 

recently returned from five days in Quebec City, a quaint and picturesque town on the St. Lawrence River,

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which will heretofore be known as "de gaz lacrymogène du monde;" the "tear gas capital of the world." I traveled there hoping to get inside the head of the anti-globalization, anti-trade movement. Trouble is, there was no head to be found. I saw heart in great abundance — in-your-face public displays of compassion were the order of the day — but clear thinking was conspicuously scarce. If you're going to embrace ignorance, I guess you might as well do it with gusto.

The respectable reason to be in Quebec was for the Summit of the Americas, a gathering of 34 heads of state from across the western hemisphere. The most important business at their meeting was the ongoing effort to negotiate a Free Trade Area of the Americas — a trade barrier-free zone stretching from Alaska to Argentina. In other words, a real snooze-a-thon.

I, on the other hand, went to Quebec for the real show: the "People's Summit," an alternative event organized ostensibly to represent — what else? — the "people's views." (I had assumed that the elected leaders at the Summit were there for that purpose, but who am I to question "the people"?). The Hemispheric Social Alliance, a coalition of ideological and economic interest groups that are opposed to free trade, had invited fringe groups, from the far-left to the farther-left, to a "carnival against capitalism" in a big white tent alongside the river. Gracious to a fault, the Canadian government (i.e., Canadian taxpayers) funded the event and paid for Latin American activists to attend.

My first encounter with these folks was at the Auberge du Paix (or Inn of Peace) youth hostel, where I stayed for the weekend. The idea was to observe and engage protesters in a relaxed social setting, and where better to meet young activists than in a youth hostel, right?

As it turned out, youth hostels aren't necessarily full of young people. The Inn of Peace was instead the makeshift headquarters of the League for the Revolutionary Party, or LRP, whose members seemed to be mostly bitter, middle-aged union guys from New York.

One such fellow, a chain-smoking, Yankee-hating, Mets fan whom I'll call Joe, was a regular in the hostel common room. He explained to me what his group was all about. "The LRP," he began, handing me a Xeroxed pamphlet, "and our comrades in the Communist Organization for the Fourth International, are fighting against the FTAA because free trade equals imperialism and corporate exploitation of workers around the world." Asked to give some examples, Joe told me that the exploitation was so obvious that he didn't know where to begin, and so he didn't. Joe then groused about his frustration with the Stalinists and Trotskyist International Socialists, who were apparently in bed with the mainstream labor union bosses and not committed to taking the "necessary action" to shut down international trade meetings. Sounds like purgin' time.

Joe might not have been the pretty coed I had hoped for, but he was definitely a card-carrying member of the "lunatic fringe." After listening to him ramble on about how capitalists will always abuse their employees, I asked him what he thought about the idea of pension privatization, which would allow workers to invest the money they currently pay to Social Security into private markets. "If, as you say, the capitalists are getting rich while everyone else is getting poorer," I asked, "isn't the answer to make everyone into a capitalist?" Joe looked at me in horror, shook his head, and left the room.

Taking my cue from Joe, I decided to turn in for the evening. For those readers who've never experienced the joys of hostelling, I note that the problem with sleeping ten to a room is that more than one in ten people snore. Thus, only rarely does one get an undisturbed night's sleep; occasionally, you find yourself in a 3:00 a.m. hell of snorting, choking, and vibrating uvulas. My room at Auberge du Paix was somewhere in between, and I was more than eager to escape the hostel and head down to the People's Summit early the next morning.

The "carnival against capitalism" lived up to its name. There were clowns, puppets, cheerleaders, dancers, actors, "Raging Grannies" (a real group of not-so-aged women who hate big business), and even a giant green floating condom ("Practice safe trade!"). My favorite was a troupe of dancers in blue who chanted and worshiped a large paper-maché water goddess. Yet beyond the spectacle, there wasn't much in the way of serious discourse, either in the streets or at the various organized "teach-ins."

Still, I made a heartfelt effort to understand what the summit attendees were all about. I interviewed dozens of people, focusing on those with fewer than ten piercings. I was "questioned" for nearly two hours by protesters at a Canadian version of a town hall meeting — not that anyone was interested in my opinion. I read all the commie literature I could get my hands on. Yet throughout it all, not once did I hear a reasonable case against free trade. It was surreal, actually, to be lectured by people who hadn't bothered to familiarize themselves with the most rudimentary principles of supply and demand, yet who professed an unassailable knowledge about how to best organize the international economy.

I became increasingly irritated as the day wore on. Hour after tedious hour, I stood in the sun listening to bandana-clad adolescents whining, loudly, about how they deserved to be on the other side of the 2.5-mile security fence that ringed the town center where the delegates were meeting. They wanted — no, they deserved — seats at the negotiating table.

Perhaps it was the hot sun or the ever-present stench of tear gas, but after a time I began think, "Hell, why not? Let's assign all important international negotiations to first-year sociology majors." We wouldn't get comprehensible documents, but darn it, our treaties would be crafted with love. I for one would have thrilled to see a few brave souls scale the security fence and storm the speaker's podium. What would they have said? "Gentlemen, if you'll just take a look at this regression I have wadded up in my pocket, you'll see a clear inverse relation between trade and the size of the Canadian marijuana crop … oh, wait, wrong paper."

Then again, citing data is far too onerous for the young professional activist. You have to, like, go to class for years and stuff, which cuts into valuable protesting time. Much easier to base one's case on slogans and the kind of mushy-headed leftist pabulum that college students so often regurgitate. Consider the following actual exchange I had with a startlingly well-fed young activist (who wore, naturally, imported jeans and sneakers). As she shook her flabby fist at me, a comrade filmed the exchange with a Japanese video camera that easily cost more than a year's salary for the average Latin American.

"People before profits!" she shouted, inches from my face.

"Okay, that sounds good," I said, stepping back a pace, "What exactly does it mean?"

"It means we need to elevate people above profits."

"Right, I got that, but what specifically does it mean? What are the policy implications?"

"We want policies," she replied, exasperated, "that consider people before corporate profits."

And on (and on) it went. If the woman had a deeper message, I couldn't coax it out her. Yet it's undoubtedly only a matter of time until the "People before Profits Act" hits Congress. If only someone had thought of this sooner! On the other hand, given that profits are really just a measure of the wealth created by entrepreneurs above their costs, living in a profitless society might not be so people-friendly after all. Think North Korea.

Such inanities weren't limited to the fringe's fringe; I heard them everywhere. One teenage do-gooder told me that Latin Americans would be better off living as hunter-gatherers, because "hunter-gatherers eat well every day." I guess it depends on what she meant by "well." A unionized garment worker, whose job likely depends on making sure no one is allowed to buy shirts made in Honduras, straight-facedly hoisted a sign reading "Free trade equals corporate welfare." Huh? If that's true, then it's curious that so many industries, like textile manufacturers and steel plants, cling desperately to tariffs and subsidies.

These arguments would be laughed out of any economics department in the world. Even faculty at the University of Havana would have trouble keeping a straight face. And speaking of Cuba, that island prison was touted as the "Only truly free country in the Americas" by several summit attendees. At one point, an older man dressed as Castro handed me my own Cuban flag to wave.

Like some nutty Japanese soldier isolated on a Pacific island, the people on the streets of Quebec didn't realize that the war over the effects of trade was over; the free traders have won. Hundreds of studies, and even casual observation, show us that misery eventually falls wherever markets expand. Countries that are open to international trade and investment tend to grow faster than those countries that seal themselves off from the global economy, more than twice as fast according to conservative calculations by the OECD. What's more, the wealth created by trade leads to higher living standards all across the income spectrum. Millions upon millions of people have been lifted out of conditions of abject poverty ever since developing countries began to voluntarily open their markets two decades ago — a feat unmatched at any time in history. Yet the protesters see none of that, choosing to make themselves the enemies of the downtrodden by denying poor countries the tools of development, arguing that capitalism and free trade cause poverty. Such ignorance is criminal.

But inconvenient facts didn't bother the anti-trade activists, many of whom were just there to party. Self-pitying horror stories of police brutality — unprovoked, naturally — were narrated with great bravado in the hostels and bars at night. An arrest was touted as a badge of honor. Speaker-trucks blasted music throughout the evening while ecstasy and other drugs circulated freely. I spent much of Saturday night under a bridge, watching thousands of teen- and twenty-somethings vandalize traffic signs, dance jubilantly around bonfires, and bang rocks on metal guardrails. The mood ranged from primal to euphoric, but it was never dull.

All the while, little of import happened in Quebec, on either side of the fence. And judging by the media coverage, I'm not the only one who thinks that the protest scene is getting stale. I mean, everyone knows that thousands of these people — usually the same people — are going to show up wherever politicians meet in large numbers to discuss international issues.

Globalization's more eloquent critics, such as Naomi Klein, Canadian author of the internationally best-selling anti-globalization screed, No Logo, bemoan the clownishness of these gatherings. But who are they kidding? Does anyone seriously believe that Klein's book would have been successful without the spectacle that such protests provide? She couldn't buy better publicity at any price, and now her book is the protester's bible.

Whatever it takes
What disturbs me most about the fringe groups that embrace these views is how they threaten civilized democratic discourse. Rhetoric notwithstanding, the fringe Left has abandoned the notion of loyal opposition when it comes to globalization. Lacking the skill or wit (or both) to persuade most people of the worth of their cause, its zealots seek to intimidate and bully their way to power. And when these groups decide that they are exempt from the basic rules of the game, it sets a dangerous precedent.

Consider this post-mortem from a prominent activist:

We were [in Quebec] to do a job, and that job was to stop or disrupt the summit by any means necessary. This was a meeting where the lives and futures of everyone in North and South America are being sold down the river wholesale — what was done in Quebec City was an act of collective self defense. There is no room for discussion and there is no room for debate on that…I certainly haven't the slightest interest in debating it.

That last line is the most telling. Most protesters, anarcho-protectionists, radical environmentalists, and unionists have no interest in open debate or democracy. And those who do, by their silence, endorse the reprehensible terror tactics of the majority. Their mission is so pure, so self-righteously self-evident, that it matters not a jot what other members of society think or want. It matters not that the people behind the fence were elected and the protesters were not.

That position is particularly hard to swallow when one remembers that no fundamental liberties are at stake. Whatever the people in the streets of Quebec are, they certainly aren't civil-rights marchers. It's absurd to elevate the "right to tariffs and subsidies" to the same level as the right to vote. "Ban the bomb" has been reincarnated as "ban Brazilian steel."

"Those implementing corporate globalization are having to resort to secret agreements, water cannons and massive tear gas," complained Kevin Danaher, co-director of Global Exchange and co-author of Globalize This! The Battle Against the World Trade Organization and Corporate Rule. That sounds like a mugger complaining that his mark resorted to "guns and violence" when confronted in an alley at night. How dare the police resist!

Ironically, the protesters may end up the victims of their own tactics, because, ultimately, the fate of globalization doesn't rest with agreements like the FTAA. It's nonsense to believe that globalization has been driven by international meetings. The expansion of economic freedom had been going on for years, in all parts of the world, before anyone ever head of the North American Free Trade Agreement or the World Trade Organization. Since the mid-1980s, 60 developing countries have unilaterally lowered their barriers to trade. Even more have flocked to the WTO. Today more than three-quarters of that body's members are developing countries, with 20 others seeking desperately to join.

In short, free trade hasn't been imposed from the top down; it has broiled from the bottom up. The process of economic liberalization began as a direct response to the abject failure of protectionist, state-dominated development strategies, and it continues today for the same reason. It will continue to spread regardless of the fate of the FTAA. So if street violence eventually succeeds in shutting down the multilateral institutions that govern trade, the anarchists of tomorrow soon may find that they have fewer targets to firebomb and less publicity to steal, but globalization will move forward regardless.

If nothing else, my time in Quebec dispelled any lingering doubts about whether the fringe groups have anything new to offer poor countries. Their issues may be new — human rights, environmental protection, and cultural diversity — but their prescription is as stale as ever: trade barriers and redistributive socialism. Never mind that those policies have failed time and again; anti-trade activists can abide anything, it seems, except choice and freedom. Their promise of government-sponsored prosperity is illusory. Countries that have heeded such advice — Cuba, North Korea, and those throughout much of Africa — have made little progress in raising living standards, while those that have embraced free markets — Taiwan, South Korea, Chile, Singapore, and others — have seen real improvements in the lives of average people.

There is no palatable alternative to free economies and free trade. A market economy isn't simply a place where people provide goods and services in the pursuit of profits — not that there's anything wrong with that. Market competition is also a discovery process; it is a way of learning things we wouldn't otherwise know. It is that knowledge that makes us more productive, wealthier, healthier, and better able to protect our world. The ability to reason and innovate is mankind's greatest gift. Yet the only way to realize that potential, to get at the knowledge that improves our lives, is through an open-market system where people are allowed to compete to satisfy the wants and needs of others.

The faces and slogans on the fringe Left may have changed, but the combination of naked self-interest and mindless idealism remains. The Quebec protesters cared deeply about many things, but sadly, not about the truth.

 
 

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