NationStates Jolt Archive


Tiered Trading system proposal

Mongeese
12-12-2003, 13:03
It is a fact of the world we live in, that poorer countries which choose to enter the market of international trade (I use the word "choose" loosely), are forced to accept terms that any self-sufficient/secure nation would balk at. They become the manufacturers of our fads, or of staple goods and services, and in so doing, they create an unstable system completely dependent on the whims of their consumers. They cannot afford to establish a self-sufficient economy, and this is sleeping dragon. One only needs to look at the present day middle-east to realize that a "Cash crop" (Oil) can lead to dangerous situations.

But it is not just for the poorer countries. The richer countries become just as dependent. By importing these "Cash Crops", they become reliant on them. And when the economies of their suppliers crash, they too will face upheaval.

I posit that any country becoming wholy dependent on outside resources is dangerous. As is such, countries should be encouraged to trade with their economic brethren, since a country of approximately equal GDP will never be able to support the cash crop of a another country.

There is, however, always a need for certain goods, so it would be unjust to restrict trade to said countries completely. However, given a tiered trading system (3 seemed appropriate for our 3rd world), handicaps would be placed on such trades, upping the ante for richer countries to indulge a mutually parasitic relationship.

As long as we allow countries to enter into dangerous practices which threaten the long term future of the world as a whole, we will always have to fear a looming economic collapse.

Proposal is up for approval
Kesgrave
12-12-2003, 16:08
Not too sure what this would acheive.