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Tuesday, November 21, 2006
The unstoppable force
Fareed Zakaria writes in Newsweek:
Of course, this is assuming that there is a strong rule of law, and governments that are either not corruptible (like moons made of cheese) or do not have enough power to subvert the natural workings of markets. That's rarely the case, of course.
Despite interferences in their functioning, though, markets are resilient beasts, and represent the will of the people better than any elected government can. But that's a subject for another day...
Remember how terrified Israel was during its war with Hizbullah this summer—a war many Israelis say they lost? Well, both Israel's stock market and its currency, the shekel, were higher on the last day of the war than on its first day. This year Thailand had an old-fashioned coup, complete with a military takeover, tanks on the streets and a media blackout. The country's currency, the baht, barely dipped.Quite. And I think that's a damn good thing, because robust markets mean more choice for consumers and greater employment for people, as well as more prosperity all around. Everybody benefits.
Markets are supposed to be smart. What are they telling us? That the current era of globalization is more powerful, widespread and resilient than many people realize.
Of course, this is assuming that there is a strong rule of law, and governments that are either not corruptible (like moons made of cheese) or do not have enough power to subvert the natural workings of markets. That's rarely the case, of course.
Despite interferences in their functioning, though, markets are resilient beasts, and represent the will of the people better than any elected government can. But that's a subject for another day...
