The Other Things Being Equal

“The other things being equal” - A good old Economics clause.

My economics teacher used to apply the above clause, ampty number of occasions while conducting Economics class. Those days, being an immature lad with the lack of grasping power added with inadequacy in command over English language, I hardly could understand anything out of his class lecturers.

Later after entering into commercial activities and own business, I started reading books on Economics and articles related to Economics, I started knowing little more about it and have come to a conclusion that “ THE OTHER THING BEING EQUAL” being used in economics seems to have become “THE OTHER THINGS ARE NEVER QUITE EQUAL”. Observe the contrast.

In the present global scenario trade negotiations by countries, by and large looks more like a barter relationship rather than being modern market transactions. Countries are upto mischievous stand to exert as much as they can to extract in the form of not only concessions and advantages but also in the form of information unconnected with the trade negotiations (an unethical conduct). They make short-term alliance and agreements of short while existence to suit and accommodate their convenience. They even conceal relevant information, instead reveal irrelevant information and the end result looks more like a “modus vivendi” burying the principles of “modus operandi”to be based on the logic of economics and trade justice.

There appears to to exist uncertainty on agreements arrived at (as I have read in the press reports recently) over the recently held Hong Kong ministerial summit. Please take note that developing countries are no longer going to be succumbed into bartering their interests, leading to economic imperfection and such a situation can either delay or defer decisions, creating economic imbalance. The need of the hour is to make a viable, acceptable trading system by all countries. The existing market solutions will not fit into all cases mainly as a result of power relationship amongst the countries and lack of symmetric of information and this impede the clean flow of simple economic models envisage. Its now evident that “THE OTHER THINGS BEING EQUAL” will not work out.
While open trade by all countries should be a welcome concept, may place some developed countries into unacceptable position and this can further impede the infrastructure development, Industrial policies connected with economic development and growth of developing countries. As one size may not fit and suit all, what exactly will fit and suit to which country, will continue to remain a matter of intense debate. As open trading system is mostly a good thing and an acceptable solution for economic development, the barter relationship by countries, existing in the present trade negotiations must be put an end and instead countries should commit themselves to provide free market access in all goods to all developing countries keeping in mind -as the saying goes-You have a right to be protected against the rich and not against the poor. Hence it’s for all countries to keep their fair trade options open within the framework of ethical negotiations keeping in mind “LIVE AND LET LIVE” concept.
Look…. In to-days business scenario anything and everything depends on various policies of the countries, viz economic policy, financial policy, Trade policy, commerce policy, industrial policy, bilateral policy so on and so forth. Therefore its essential for countries policy makers to bear in mind all considerations favorable to developing countries are taken care of and to ensure fair policies are compiled and framed for compliance. Let’s work together to achieve global economy wherein every country will participate and once the global economy is brought to rich, individual economy automatically comes within the reach of richness in economy.
J.KANNAN