The Name of Class
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Free market economy is interlinked with the capitalism and the capitalist system. There has been much debate about the ecological crisis and one of them is also inevitable global climate changes. The paper will argue that the free market economy is incompatible with safeguarding from the ecological crisis and global climate changes because it is based on the capitalist system which ideology favors profits over environment protection and public goods. The thesis of the paper is that free market economy cannot solve global ecological crisis and climate change.
Impacts of free trade on ecology and climate change
Free trade agreements have been criticised since they can undermine the nation attempts to protect the environment and safety standards. Free trade agreements can result putting the maximization of profits and economy prior the environment protection. Trade can impact the environment and therefore have an impact on the ecology since it spurs the economic activity which impacts can be harmful to the environment. Free trade could lead to the industry moving from rich to poorer countries, which could in order for profit result in raising global pollution. Based on the Copeland and Taylor (2003, pp. 3) the trade liberalization and the increased economic activity for 1% results in rising pollution for up to 0.5%. With the capital accumulation and despite the improved technology as a result of economic growth the negative impact on the environment will worsen (Copeland and Taylor, 2003, pp. 2-4).
Free market capitalism defines progress by the growth of products. Analyses of the ecological issues are interlinked with the economic and free trade system. The free trade economy is resulting in the eroded ecological sustainability and governmental regulations and power in the pursuit of the economic growth on the environmental expense. For resolving of the environmental issues the transformation of the economic system is needed, which is based on the consumerisms and energy intensive nature (Mshana, 2010).
The economic system is critical to environmental issues since they are caused by the system and many times also worsened. A system which is based on the profits and competition has various disadvantages and the logic of the system of production and distribution is the main factor that enables the global climate changes policies to implement in a timely manner. Capitalist society with free markets needs constant expansion and growth in order to avoid economic crisis. The basics of capitalist system need a continuation of spending, population growth and consumption, which is one of the issues that enhances and contributes to the climate change. Capitalism favors profits, growth, accumulation, and maximization of profits and technology that is dependent on the fossil fuels, chemicals. The real environmental problems are under capitalism impossible to solve, with accumulating personal wealth and profit without caring for the overall good of society. Free trade results in unpaid costs of causing the global climate change since it cannot be sustainable (Foster and Magdoff, 2011, pp. 27-35).
The concept of the responsibility is being implemented in order to maximize the shareholder values. Global capitalism with free trade areas, deregulation, liberalization and privatization creates conflict and inequalities in income and wealth. Exploitation of class from global companies is seen. Free trade is unjust in the light of intellectual property rights and existing rules that are in favor of the rich countries. The present world trading system is not fair and free. Unfairness is seen in the core principles and regulations in the world trading where agreements do not deal among others with the environmental protection. Global corporations do not always act in accordance with the moral standards (Dunning, 2003).
The ideology of the capitalist system is a culprit for coming to this level of ecological and climate crisis. The failure of the system to respond to the climate changes has resulted in the increased emissions. The market cannot solve the climate crisis, which has been seen through the ideological and political lances. Without radical change economic and political system the free market will further favor market supremacy and profits without the drastically activity to tackle the climate change issue. The CO2 levels are raised and are being insufficiently tackled in the name of protecting the economic system, which is failing the vast majority of the population (Klein, 2014).
Global political economy and capitalism is exploiting the labour and environments of the developing countries with protecting the interest of developing ones. The prosperity of the north is based on the exploitation of the natural resources and unsustainable methods. The industry is moving from developing to developed countries where less regulation exists with cheap labour and unsafe methods which are causing the ecological damage. Free trade is based on the transnational corporations that are exploiting resources in unsustainable way for quick profits (Ravenhill, 2011, pp. 466-468).
There are direct and indirect impacts of the free trade and liberalization of the market on the environment. With this state of technology and energy generation as it is used today the free trade will intensify the issues of the global climate change in the future. The technological improvements and technological progress are not always beneficial for the environment. The reality is that in theory this is possible, but in the recent past with the removing trade barriers the increased use of fossil fuels, with the large productions and all trade flows generate greenhouse gas emissions due to the production and transport were seen (Reuney, 2010).
There are also suggestions that free trade can help to reduce the impact on the ecology. Some argue (World Bank, 2012) that liberalization and free trade do not result in the increased greenhouse gases since with more trade the GDP is rising and with it the income which results in technological improvements and more cleaner industry and less pollution. The main culprits identified are governments with the lack of implementations and willingness (World Bank, 2012). Economic activity could result in the increase in carbon dioxide emissions. The impacts of trade on the environment have been acknowledged. The efficiency of policies to address the ecological issues are insufficient since they are not fully implemented (United Nations Environmental Program and World Trade, 2009, pp. 87-103).
Conclusion
Free trade inside the capitalism system has contradicting values to the sustainable development. The economic trade has brought indisputable global advantages, but it cannot solve the global ecological crisis. The thesis of the paper that free market economy cannot solve global ecological crisis and climate change can be confirmed, since with the enhanced free trade the negative environmental impacts are increasing and have not brought the desired goals to prevent further global climate changes.
References
Copeland, Richard Brian, Taylor, Scott Michael. 2003. Trade and Environment: Theory and Evidence. United Kingdom: Princeton University Press.
Dunning, John. ed., 2003. Making Globalization Good: The Moral Challenges of Global Capitalism. United States: Oxford University Press.
Foster, John Bellamy and Magdoff, Fred. 2011. What Every Environmentalist Needs to Know About Capitalism. New York: Monthly Review Press.
Klein Nomi. 2014. This Changes Everything – Capitalism vs. The Climate. United States: Simon & Schuster.
Mshana, Rogate. 2010. Alternatives and Challenges for the Ecumenical Movement. [Online] Available at: <http://www.ev-akademie-boll.de/fileadmin/res/otg/640510-Mshana- f.pdf> [Accessed 18 Apr. 2016]
Ravenhill, John. 2011. Global Political Economy. Oxford: Oxford University Press.
Reuveney, Rafael. 2010. On Free Trade, Climate Change, and the Two. Journal of Globalization Studies Vol. 1, no. 1. [Online] Available at: <http://www.sociostudies.org/journal/files/jogs/2010_1/on_free_trade_climate_change _and_the_wto.pdf> [Accessed 18 Apr. 2016]
United Nations Development Program and World Organization. 2009. Trade and Climate Change. [Online] Available at: yhttps://www.wto.org/english/res_e/booksp_e/trade_climate_change_e.pdf>[Accessed 18 Apr. 2016]
World Bank. 2012. Trade and Climate Change: An Analytical Review of Key Issues. [Online] Available at: <http://siteresources.worldbank.org/EXTPREMNET/Resources/EP86.pdf> [Accessed 18 Apr. 2016]
