Globalization - tariffs and subsidies, are they merely 'sophisticated' bribes?

One of the functions that I have in my new post is responding to questions and queries from persons across the globe who are trying to understand our particular approach to establishing the Gospel of Jesus Christ (with all that entails - including justice, mercy and equity).

Today I received an email from a person who read one of the books that we suggest on healthy and responsible principles for being a Christian business person.  The person who enquired was referring to Chapter 16 of Ed Silvoso's book called 'Transformation'.  In this Chapter (among other things) Ed discusses how Christians should work against corruption and the abuse of economics to enslave people - a reality that is contrary to the principles of God's Kingdom.  Among other things he has a brilliant discussion on bribes (something that is common in Africa), and the use of 'tariffs' and 'subsidies' (something that is more common in the Western world, and among 'superpowers').  

The person who sent the email wanted to know how one could equate tariffs and subsidies with bribes.

Here's the response that I sent.  What do you think?  Anything I've missed, or misunderstood?

The core of the matter is simply that bribes, abusive subsidies, and enslaving tariffs all have a similar foundation – unjust and undeserved financial gain (often at the expensive of the good of others).  Tariffs and subsidies are however, much subtler and less easily identifiable as destructive economic practices.  And, the matter is complicated and compounded when such tariffs and subsidies have national (or multinational) legal backing.

Subsidies and tariffs are somewhat complex in the global economy since what they seem to do is either hedge and protect a certain group, or create space for a group to operate where they would otherwise not have the capacity to operate.  So, for example, South Africa is very fortunate to be strong in agriculture.  If there complete free trade it is likely that we could supply maize and wheat to Europe and the US that is both cheaper and possible of a higher quality (simply because we have an abundance of natural resources, arable land, and labour is much cheaper).   However, because of subsidies in the European Union farmers in those regions have their products subsidised so that they can offer them at a much cheaper rate.  The long and the short of such subsidies (in very broad generalizations) is that they keep the poor impoverished and do not take into account the necessity to spread wealth throughout the global economy (rather for political reasons it is kept within the wealthier regions).

The question that one would ask is whether God favours any one nation more than another?  In God's economy would it be pleasing to God that some suffer while others prosper – even when they are both equally productive, faithful, and fruitful in their labours?  So, the challenge is for those who make 'global deals' to keep God's picture of the world, and the world's economy in mind.  It is quite possible that a well intended deal could have an extremely negative impact upon others elsewhere in the world.  Of course my view is awash with generalizations and assumptions.  The point is simply that one must consider the impact of one's choices, not just by economic measures, but by the measure of the standards of God's Kingdom and God's desired economy for ALL the persons on earth.

Comments

[Steve Hayes]

It is perhaps more complex than that. There's a thing I posted on one of my blogs recently (within the last month) about how the "free trade" ideology has damaged African agriculture, and thus the ability of African countries to feed their own people, and made them dependent on imports, and now that imports cost more, many more people are starving.

[Andre]

Is God a capatilist? If not,how do we justify competing for more business? Competion is vital in business to keep prices down but is it God's way? It is also not the subsidies etc. that are to blame but greed and profit motives, there are farmers who will sell for biofuel if the price is better even if there is a food shortage.

In terms of God favouring one nation, I thought it was the Jews, or is that how we humans made it sound when writing the Bible?

[Andre]

Bribes are like feeding baboons... once the baboon is used to getting food from the humans, they see it as their right and will demand it from the humans. The humans are scared of these dangerous animals and therefore give out of fear. If you never fed them in the first place, they would leave you alone.

So when the European (and others I assume) explorers went out to discover the big wide world and came face to face with other tribes and nations, they would give them a gift (bribe?), smoke the peace pipe, have a braai or whatever and then having pacified them, would go forth and seek to do business (expoit?)their new trading partners. So what has changed? Also in certain cultures, if you wanted to seek the counsel of the king/leader, you had to take a gift or sacrifice. Now this tradition was carried over to outsiders who wanted to see the king to do business. So when some funky white guys wanted to mine the lands of some African tribe, they gave the king a gift or two and got some of his land cheaply so that they could make a fortune.

Now years later we find it terrible in our country much bribery and corruption there is in our government, but it is only part of the culture ... remember the baboons?

[abraxas]

The whole money system is broken, capitalism, free trade etc, are all fancy terms for enslavement.

Are the workers of today any better off than the slaves of before? ALl that has changed are the justifications for keeping them under control.