Crisis, what crisis?

Denying developing nations their economic opportunities may even lesson environmental degradation, as slower economic growth may temper rising greenhouse gas emissions, but it will hardly lesson the risk of conflict (especially civil war), terrorism, or greater resentment.

If we do continue to support freer trade then Australians may have to accept tougher times ahead, an aspect guaranteed by tougher rules in regard to access to credit in the future and the likelihood that national governments will long compete with each other in taxation and in terms of labour cost.

Of course, Australian policy trends will long be influenced by what happens in more powerful and influential like-minded nations. As Fareed Zakaria stated in The New York Times (May 1, 2005), the ultimate challenge for the US was whether it was prepared to adapt to a more level playing field “as other countries and people rise in importance and ambition”.

But at a time when the flaws of recent policy trends have indeed become evident, it is essential that greater intellectual honesty is offered to also reflect ongoing policy difficulties ahead. After all, the strengths and weaknesses of freer trade will hardly go away no matter what policy outcomes are decided in the future, long after the current financial crisis subsides.