Almost every developed Almost every developed country is taking measures country is taking measures

to restrict immigration—to restrict immigration—particularly from poor particularly from poor

countries:countries:

The North Africans in The North Africans in France,France,

The Turks in Germany etc.The Turks in Germany etc.

Maybe even Bulgarians in Maybe even Bulgarians in UK?UK?

We are in a particularly sensitive position because the US/Mexico border divides the richest country in the world from what is still a Third World country with a huge population growth.

On the one hand, segments of the US economy depend on these “illegals”; on the other hand, they are illegal.

By the middle of By the middle of the nineteenth the nineteenth century, when century, when the Industrial the Industrial

Revolution was Revolution was at it height, at it height,

Europe occupied Europe occupied almost all of almost all of

what are now the what are now the poor countries.poor countries.So, the poor countries were not really poor to So, the poor countries were not really poor to

start with, but were locked out of the process of start with, but were locked out of the process of becoming wealthy and modern.becoming wealthy and modern.

Well, the US was fortunate enough, as we have said, to have thrown off domination by the Europeans, and to become its own master at this critical time in shaping the world.

The The Industrial Industrial

RevolutionRevolution

THE COLONIAL COUNTRIES WERE THE COLONIAL COUNTRIES WERE EFFECTIVELY LOCKED OUT OF THE EFFECTIVELY LOCKED OUT OF THE GREATEST ECONOMIC CHANGE IN GREATEST ECONOMIC CHANGE IN

HISTORY, AND BECAME HISTORY, AND BECAME PRODUCERS OF RAW MATERIALS.PRODUCERS OF RAW MATERIALS.

The continent of The continent of Africa was not only Africa was not only

colonized, but colonized, but before that was before that was

ravaged by the slave ravaged by the slave trade, which trade, which

destroyed the destroyed the inidigenous inidigenous

economy, trade and economy, trade and social structure of social structure of almost the whole almost the whole

continent.continent.

Goods, people and Goods, people and capital were all capital were all extracted from extracted from Africa for 300+ Africa for 300+ years, and so it years, and so it

was left ruined and was left ruined and without human and without human and physical capital. It physical capital. It

has has nevernever recovered from recovered from

this. So, Africa is this. So, Africa is not intrinsically not intrinsically

poor—it was poor—it was mademade poor.poor.

The US wants to hold on to, and even improve, its life-style

The Rest of the World wants to live like this too—but the gap is widening.

South and South and

SoutheastSoutheast

AsiaAsia

Britain seems to Britain seems to be doing better be doing better than the rest of than the rest of

EuropeEurope

The basic policy of the US is that the only way for countries to improve is through:

Free Trade and Open Markets “Comparative Advantage” allowing each

country finds its place in the world: its “natural advantage”

Pursue Regional Free Trade first, as the World Trade Organization does not have the full confidence of the Administration.

Poor countries + population growth = Crime and instability at home (Latin

America in part) Pressure on illegal immigration into the

parts of the world that are rich. Since the Developed World has a static, or declining, aging population, this need will increase, so there will be push and pull factor in immigration

It is not in anyone’s interest for the poor to remain poor:

Poor people are a weak market Poor people are a source of political

extremism (hopeless people are that way!)

There is an historical injustice at work here anyway, so there are moral, equity, compassion and other emotional arguments

World seems to be shaking out into 3 zones

1. Rapidly-advancing East and South Asia (China became the largest consumer of resources in 2005)

2. Uncertain, periodic growth with high risk factor (Brazil, Argentina, Russia (too dependent on oil prices)

3. “Hopeless cases” like much of Africa

What policy should we have to each of these?

Will the rich world unite to protect their colossal advantage?

Is China a threat? Should we find a partner to strengthen

our position? (EU, FTAA?) What are the advantages of doing this?