Paul Krugman explains why free

Paul Krugman explains why free trade is so important

In this New York Times Column: "The Good News".

"... in the mid-1970's, development economics was just too depressing to pursue. Indeed, it might as well have been called non-development economics. No third world nation had made the transition to advanced-country status since 19th-century Japan. Circa 1975 it seemed that the club of nations with decent living standards was no longer accepting new members.

"Now we know that the club isn't that exclusive, after all. South Korea and several smaller Asian economies have made a full transition to modernity. China is still a poor country, but it has made astonishing progress. And there are signs of an economic takeoff in at least parts of India. I'm not talking about arid economic statistics; what we've seen over the past generation is an enormous, unexpected improvement in the human condition.

"How was this improvement achieved? Whenever I give talks about my latest book, someone asks whether I still believe in free trade. The answer is yes � not because I have any fond feelings about multinational corporations, but because every one of those development success stories was based on export-led growth. And that growth is possible only if rising economies can expand into new markets..."

Krugman has reservations and the overall column is more nuanced. But this is the key point.