Posts tagged with: globalization

On Nov. 28, the Canada-based Fraser Institute released the eighth edition of its annual report, Economic Freedom of North America 2012, in which the respective economic situation and government regulatory factors present in the states and provinces of North America were gauged.

Global studies of economic freedom, such as the Heritage Foundation’s 2012 Index of Economic Freedom and the Fraser Institute’s Economic Freedom of the World 2012, rank the United States and Canada as two of the most economically free countries in the world. But, as data from the North America report shows, not all sections of the countries are experiencing an equal level of economic freedom and it is important to look at areas in which this falters.

States and provinces were evaluated and ranked within three categories: 1) Size of Government; 2) Takings and Discriminatory Taxation; and 3) Labor Market Freedom. The Canadian province, Alberta, claimed the top spot as most economically free, followed closely by Delaware. New Mexico placed 59th, making it the least economically free state, followed by Prince Edward Island of Canada, notching the rank of least economically free area in North America (between the United States and Canada).

The Economic Freedom of North America 2012 report draws a clear link between prosperity and economic freedom, through a comparison of states and provinces. “In the United States, the relatively free Georgia does much better than the relatively unfree West Virginia. In Canada, British Columbia, where economic freedom has been increasing in recent years, has been experiencing considerably greater growth on a per-capita basis than Ontario, where economic freedom has been decreasing in recent years.” (more…)

Poverty, development, and stewardship tend to be topics both of discussion and personal reflection as we are reminded to count our blessings around this time of year. If similar ideas have been on your mind, you may be interested in Globalization, Poverty, and Development, an AU Online lecture series that explores the theme of human flourishing and its relation to poverty, globalization, and the Church in the developed world. Join Mr. Brett Elder, a director at Acton Institute and creator of the NIV Stewardship Study Bible and Dr. Victor Claar, a professor of economics at Henderson State University, for online sessions scheduled for Tuesday, December 11 and Thursday, December 13 at 6:30 pm EST.

Everyone who registers for the Globalization, Poverty, and Development series (or subscribes for an All Access Membership) has access to the recordings and resources shared on the course page. This means you can still register for the course even if you won’t be able to join us for the live sessions. Visit auonline.acton.org for more information and to register.

Global poverty and its alleviation are often subjects of heated debate. Join us for an AU Online lecture series that explores the theme of human flourishing as it relates to poverty, globalization, and the Church in the developed world. The Globalization, Poverty, and Development series is scheduled for December 6 through December 13, 2012. Online sessions will be held at 6:30 p.m. EST on Tuesdays and Thursdays. Visit auonline.acton.org for more information and to register.

You should also check out the newly released 6 episode DVD series from our friends at PovertyCure that explores human flourishing and their creative capacity.

How about a tax on fires?

On National Review Online, Acton Research Director Samuel Gregg examines the push for a “transaction tax” to solve some of the fiscal problems in the European Union. The move would, Gregg explains, “levy a tax on any transaction on financial instruments (securities, loans, deposits, derivatives, and various asset classes) between banks, hedge funds, insurance businesses, investment companies, and other financial organizations whenever one contracting party is located in the EU.” That may not sound like much, but would apply to literally millions of financial transactions daily. The scheme has drawn the support of “EU apparatchiks” but the opposition of the British who see the tax proposal as a threat to London’s financial competitiveness. Gregg sees what’s behind it:

In short, the EU’s transactions-tax scheme reflects a long-standing desire to “throw sand” in the wheels of financial globalization. Its origins lie in what’s called the “Tobin tax,” named after the American economist James Tobin, who argued in 1972 for the levying of a 0.5 percent tax on all spot-currency conversions. The point, for Tobin, was to discourage “speculators” who “invest their money in foreign exchange on a very short-term basis.”

Unfortunately for its advocates, there’s considerable evidence that Tobin-like taxes on financial transactions don’t reduce volatility. In the midst of financial crises, long-term and short-term investors behave in very much the same way — they get out, and transaction taxes don’t prevent them from abandoning ship. Greece, for example, currently applies a transaction tax to the sale of Greek-listed shares. That, however, isn’t doing much to prevent the present exodus of capital from Greece.

Taking the broader view, it’s hard to avoid concluding this latest EU harmonization boondoggle is about two things. First, it’s a way for EU officials and governments to appear to be punishing European financial institutions for their contributions to Europe’s economic crisis. Second, it reflects the general European failure to come to grips with some of the deeper problems contributing to Europe’s debt crisis.

Read “Financial Fiddling while the Euro Burns” by Samuel Gregg on NRO.

In this week’s Acton Commentary, “Contagious Community,” I look at the positive as well as the negative aspects of coordination and cooperation between human beings on a global scale. The film Contagion provided the occasion for these reflections, and I argue that

while the film is clear about the dangers of globalized human relationships, it also teaches a more subtle lesson. Even as disease represents a danger that can have worldwide impact, such dangers remain the exception rather than the rule. Indeed, the film portrays quite well how global networks of information and exchange are absolutely foundational for our contemporary world.

Abraham Kuyper on Common Grace in Science & ArtI was reminded of this uniquely human social characteristic again while reading through Abraham Kuyper’s Wisdom & Wonder: Common Grace in Science & Art this week. Kuyper makes the point that human pursuit of scientific knowledge is a communal endeavor. In fact, he writes,

Science is thus constructed not on the basis of what one person observes, discovers, imagines, and organizes into one system in his or her thinking. Rather, science arises from the fruit of the thinking, imagining, and reflecting of successive generations in the course of centuries, and by means of the cooperation of everyone.

What we have in the case of the development of human knowledge, then, is a communal endeavor defined not just in spatial terms (i.e. globally) but also temporally, including the successive ages of human beings from the past and their discoveries as they have been built upon and communicated to us today.

When discussing the idea of the invisible church, theologians include both the living and dead (who now enjoy the revelation of the blessed in the intermediate state) as making up “the communion of saints.” But similarly with respect to science as a common grace enterprise, we have a communion of common grace that likewise includes the living as well as the dead.

No single person can comprehend science in an “exalted sense,” which for Kuyper “originates only through the cooperation of many people,” the living as well as the dead. In the same way, no single person knows how to manufacture a pencil or build a chair, in part because none of us who are alive today got where we are on our own. We (and our civilization) are the products of those who have come before.

Recognition of this should instill in us a pretty healthy sense of humility and gratefulness for the graces of human community.

Since your wallets are probably a bit lighter due to Tax Day here in the United States, Acton wants to help out by giving you a free e-book: Globalization, Poverty and International Development. Just follow the link, Globalization, to get our monograph from Lord Brian Griffiths delivered free to your Kindle or e-reader. This offer is available beginning at 3 a.m. EST, 4/17/12 until 3 a.m. EST, 4/19/12.

 

In the journal Foreign Affairs, Acton Research Director Samuel Gregg offers an analysis of the Vatican’s recent pronouncements on economic policy, most notably the document issued in October titled “Towards Reforming the International Financial and Monetary Systems in the Context of Global Public Authority” (also called “The Note”). The Church, Gregg said, “wanted to attract the attention of world leaders as they assembled to discuss ongoing turmoil in financial markets at the G-20 Summit in Cannes and to add its voice to those arguing for capital controls (such as the “Tobin tax”) to discourage international financial speculation.” But, he argues, advocating a world economic authority could work against the interests of developing nations, including those heavily Catholic:

… a world authority could pit the economic interests of Catholics in developed countries against those in developing nations, creating challenges for how the Church presents its teachings about economic issues to Catholics throughout the world. Many countries throughout Latin America, Africa, and Asia are in a fundamentally different economic and geopolitical place from those of the ailing EU. The Church must thus deepen its appreciation of how the global operation of economic factors such as comparative advantage, incentives, and tradeoffs has different impacts upon Catholics living in very dissimilar economic circumstances. But this also has implications for the Church’s position concerning the economic functions to be assumed by a world authority. Such responsibilities, for example, could primarily concern promoting greater economic integration through removing obstacles to trade. This, however, would be incompatible with the Note’s theme that a world authority’s economic functions should be focused upon securing greater control over the pace of change through international regulations that, if implemented, would significantly impede the free movement of people, goods, and capital.

Read “The Vatican’s Calls for Global Financial Reform” by Samuel Gregg on the website of Foreign Affairs.