I can think of at least five good reasons why it benefits richer nations (e.g., the United States and Canada) to give a helping hand to developing nations.

1) Higher living standards in developing nations (which often have a history of totalitarian rule) tend to loosen up political control. A bigger middle class signals a shift in both power and priorities. Greater consumption seduces a desire for more freedom – or, to express it more poetically, a desire for more freedom can arise from the “seduction of consumption”.

2) Higher living standards in emerging nations create customers for our exports.

3) Greater prosperity in emerging nations creates greater demands for safer working conditions and a cleaner environment. Over time, it also evens the playing field with respect to labour compensation, vis à vis richer nations.

4) At a certain stage of development, an emerging nation is likely to join international bodies such as the World Trade Organization (WTO).  Then other nations have recourse to the courts to argue against unfair trade practices. A number of outstanding cases against China, which recently joined the WTO, are prime examples.

5) And finally, to put it in colloquial terms, if we are helping them, then they have a stake in our future prospects as well.

Alex Carrick

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