Category: International Trade

Alexei Khomiakov, the Russian Slavophile thinker often credited with first articulating the Orthodox principle of sobornost.

Today at Ethika Politika I offer an assessment of the phenomenon of globalization from the perspective of Orthodox Christian anthropology. In particular, I focus on the concept of sobornost in the thought of the Russian philosopher Vladimir Solovyov, writing,

Solovyov’s account of the moral progress of humanity through globalization is rooted in the Russian idea of sobornost’, which Christopher Marsh and Daniel P. Payne define as “the idea that human beings retain their freedom while participating in human society, and that human society is a participatory process through which human beings actualize themselves as unique hypostases [i.e. persons].” Accordingly, Solovyov writes that true society does not abolish the individual, but “subordination to society uplifts the individual” and “the independence of the individual lends strength to the social order” — an Orthodox parallel to subsidiarity.

I had raised the question of the similarity between sobornost and subsidiarity a few weeks ago during Fr. Michael Butler’s Acton University talk on “Orthodoxy, Church, and State.” I summarized his insight on the concept at the time, writing,

With the reforms of Tsar Peter the Great, however, the Church was literally made a department of the state [in Russia]. The inspiration for this, notably, was not symphonia but the European Protestant national Church model. While in this context the Russian Church still continued to carry out its functions in society, it had lost a great degree of autonomy. In the midst of this context, the Slavophile thinkers Alexei Khomiakov and Ivan Kireevsky reacted to this statist trend in Russian society by developing the theory of sobornost, inspired in part by the Russian word for “Catholic” in the Nicene Creed and inspired by the Orthodox Church’s conciliar basis of authority.

As they framed it, the idea of sobornost placed the idea of sovereignty in the whole of a people. All human beings are interconnected, and each therefore deserves their own autonomy while, at the same time, [each] has a duty to serve all others…. Ultimately, sobornost at its best would be an Orthodox parallel to subsidiarity in which each level of society, all the way down to the individual, has a role to freely play for the common good and each has a duty to assist others for that end.

The question of similarities and differences between subsidiarity and sobornost has been on my mind for some time. There would seem to be clear parallels between the concepts that were coincidentally developed in their modern forms at nearly the same time, though among different traditions for somewhat different purposes. (more…)

2787733The second-hand clothing industry in parts of Africa is big business. In fact, many charities receive substantial revenue from the sale of these clothes. Why buy a t-shirt for 10 dollars when you can buy one for 32 cents? These trends should come as no surprise to Americans because consignment shops and thrift stores are plentiful. However, the difference is that in many parts of Africa second-hand clothing is the primary means of buying clothes and is, therefore, inadvertently stifling the growth of local African economies. Sadly, charities are playing a role in killing this growth.

For example, CNN just ran a story about how Americans sending over old clothes is killing Africa’s economy:

Today at Ethika Politika, I critique David Bentley Hart’s recent (non-)response to the critics of his attack on natural law in public discourse last month, appearing in the most recent issue of First Things. My article, “Hart’s (Non-)Response to His Critics: Trying to Have It Both Ways?” is a response to Hart’s recent article, “Si Fueris Romae.”

While Hart’s most recent article may seem unrelated, it starts to sound remarkably similar to his article on natural law from last month about half way through. It is this convergence between the two that I examine and critique.

Ultimately, Hart seems to be trying to “have it both ways” when it comes to natural law. I find this to be particularly evident from his conclusion, in which he criticizes US policy toward China, writing,

Decade upon decade, we hear of the arrest, imprisonment, torture, and murder of China’s religious minorities (house-church Christians, Tibetan Buddhist monks, and so on), of the cruel measures taken to enforce the nation’s one-child policy, and of countless other chronic atrocities, but our response consists in little more than a sporadic susurrus of disapproval, just loud enough to flatter ourselves that we have principles but not so loud as to allow those principles to interfere with fiscal or trade policy. We try to shame the ruling party with pious panegyrics on “human rights,” as though the concept had any appreciable weight outside the cultural context that makes it intelligible, but we buy and borrow from the party, and profit from its policies, without hesitation or embarrassment. I think the government of the PRC might be pardoned for concluding that our actions, and not our words, indicate where our true values lie.

While at Ethika Politika I critique his reliance upon the concept of natural rights even while claiming that only our “cultural context … makes it intelligible,” there is another point to consider here. Putting aside the inconsistency of his principles, would his recommendation — more restricted “fiscal or trade policy” — really have the effect that he hopes? (more…)

Blog author: jballor
Friday, March 15, 2013

Sam Gregg writes of Argentina, whence the new Pope Francis hails, “Over and over again, Argentina has been brought to its knees by the populist politics of Peronism, which dominates Argentina’s Right and Left. ‘Kirchnerism,’ as peddled by Argentina’s present and immediate past president, is simply the latest version of that.” For a bit of the current economic context in Argentina, here’s the latest on Kirchnerian political economy as related by John Teevan:

Cristinakirchnermensaje2010That’s the Argentine Way: In order to prevent the outflow of dollars from President Cristiana Kirchner’s silly-but-harmful economy, she created a new trade policy that permits only as much importing of foreign goods as can be paid for by equally matched by exports. So how is Newsan, an Argentine maker of Sanyo and JVC electronic equipment, going to create the exports necessary to buy the parts it needs to import? Easy, they added a seafood business that now exports shrimp and is paid in dollars. Similarly, Argentine BMW exports rice. Better to partner with Argentina’s wineries which produced $865m in wine exports. The words to describe this urgent economic inefficiency are not ‘free market’ nor even ‘social economic planning’ but ‘a Byzantine labyrinth.’ Why is it necessary? Because Ms. Kirchner also has currency rules or controls that ration how much foreign currency people can hold. Why? Because her policies have made the Argentine currency worth less threatening her dollar reserves. All this is to help ‘manage trade’ as she says so that Argentine jobs can be protected from ‘cheap imports’. President Cristiana is contorting herself to put many fingers in her leaky dike. She’s running out of fingers and looks ridiculous.

The above is from John’s monthly email, “Economic Prospect.” Send John a message if you’d like to be added to his list.

Trade and Mutual AidIn the forthcoming issue of Comment magazine, I examine how free trade orients us towards the good of others. In doing so, I argue against the value of pious banalities and cheap slogans. I include examples like, “Go in peace; keep warm and well fed,” or, “When goods do not cross borders, armies will.” The latter is often attributed to Bastiat, and while it captures the spirit, if not the letter of Bastiat’s views, the closest analogue is actually found in Otto Tod Mallery: “If soldiers are not to cross international boundaries on missions of war,” wrote Mallery in 1943, then “goods must cross them on missions of peace.”

I was struck by the disconnect between ideology and reality, or between idealism and realism, in an anecdote from a recent foreign policy speech from Sen. Rand Paul. As Paul notes,

In George Kennan’s biography, John Gaddis describes President Clinton asking Strobe Talbot “why don’t we have a concept as succinct as ‘containment.'” Talbot’s response [was] “that ‘containment’ had been a misleading oversimplification; strategy could not be made to fit a bumper sticker. The president laughed… “that’s why Kennan’s a great diplomat and scholar and not a politician.”

I guess that’s also the reason that I’ll never be a politician, either. As Lord Acton observed, “Every doctrine to become popular, must be made superficial, exaggerated, untrue. We must always distinguish the real essence from the conveyance, especially in political economy.” The key for responsible governance is not to lose sight of the complexity that lies behind popular exaggerations and conveyances.

As I argue in “Trade and Mutual Aid,” the temptation to rest easy with simple formulas to complex problems is common, but must be resisted: “Divorced
from a more comprehensive conception of the human person and social flourishing, an uncritical reliance on free trade to solve the world’s problems can well become destructive.” Even so, I conclude, “Free trade is a system that imperfectly, and yet with some measure of success—as Bono and countless others are beginning to recognize anew—orients us toward the good of others.” In the course of this piece, I draw on a variety of sources, including Frédéric Bastiat, Adam Smith, John Calvin, Johannes Althusius, Abraham Kuyper, Herman Bavinck, Pope Paul VI, and Friedrich Hayek.

To get your copy of the Comment issue on the topic of persuasion, including my piece on the fundamental persuasive nature of exchange, “Trade and Mutual Aid,” subscribe by March 1. You’ll also find content from new editor James K.A. Smith, Anne Snyder, Jim Belcher, Ashley Berner, Jonathan Chaplin, Marilyn McEntyre, Janet Epp Buckingham, D. Bruce Lockerbie, Calvin Seerveld, Natalie Race Whitaker, and Nicholas Wolterstorff.

This morning at Ethika Politika, I argue that “acting primarily for the sake of national interest in international affairs runs contrary to a nation’s highest ideals.” In particular, I draw on the thought of Vladimir Solovyov, who argued that, morally speaking, national interest alone cannot be the supreme standard of international action since the highest aspirations of each nation (e.g. “Life, Liberty and the pursuit of Happiness”) are claimed to be universal goods. I would here like to explore his critique with reference to the subject of international trade. (more…)

Blog author: jcarter
Thursday, August 9, 2012

If you want to work in international development, says Charles Kenny, go work for a big, bad multinational company:

Kids today — they just want to save the world.

But there is more than one way to make the planet a better place. Here’s another option: Get an MBA and go work for a big, bad multinational company. Consider this: Over the past decade, foreign direct investment in Africa topped foreign aid — and in 2011 alone, by $7 billion. And unlike food handouts or free latrines, this kind of investment built factories, financed banks, and opened mines and oil fields, creating tens of thousands of jobs and transferring invaluable knowledge to the countries that need it most. That’s good news, because it is increasingly clear that new technologies are what’s driving improved quality of life in Africa, and new ways of doing business are vital to sustaining economic growth on the continent.

Yet there’s still a widespread feeling that multinationals are the rapacious, profit-obsessed spawn of globalization and free markets, running amok across the developing world. Some surely are. But think about how hard U.S. states compete to attract a Toyota factory. Or how happy Britain was when the Indian firm Tata bailed out its ailing steel industry. If multinationals can make that kind of difference in job creation and productivity in the rich world, consider the even greater role they play in poorer countries.

Read more . . .