There can be no doubt, writes economist Melvyn Krauss, that the prosperity of the industrial nations since the Second World War has been due largely to global specialization and interdependence. No one country does all tasks today -- products are designed in one country, produced in another and assembled in a third. The increased standard of living resulting from global specialization in turn has led to the growth of the modern welfare state, including an increased demand for economic security and social measures which guarantee politically-determined minimum consumption standards for citizens. Ironically, says Krauss, as the debate over the North American Free Trade Area (NAFTA), the General Agreement of Tariffs and Trade (GATT) and the recently established World Trade Organization demonstrate, today's welfare state has evolved into a protectionist state. U.S. consumer advocates (Ralph Nader) see free trade as a threat to consumerist legislation. U.S. environmentalists (Jerry Brown) see free trade as a threat to environmental legislation. U.S. human rights advocates (Anna Quindlin) see free trade as a threat to human rights abroad.
