ENV 214

Section 1
Assignment on
“Free market economy: Good or bad for environment?”

Prepared for
Dr. Sirajul Islam

Prepared by
Syed Faisal Ahsan
NSU ID # 071 917 030

Date- August 12, 2012

Introduction

In recent eras, the economy of the world facing several problems. Wars, natural calamities,
unfair conditions of the capitalist rich countries and recent recession has hampered world
economy. The gap between rich and poor countries are increasing day by day. Economists have
given so many ideas and concept over these years to solve these problems, among which is free
market economy or free trade economy is one.

On April 15, 1995, representatives of 120 nations signed the Uruguay Round of the General
Agreements on Tariffs and Trade (GATT). This is the revised version of the1948 GATT
convention, which attempted to lower tarrif barriers to world trade among member nations. The
new GATT establishes a world Trade Organization (WTO), giving it the status of a major
international organization (similar to the United Nations and World Bank) and power to oversee
and enforce the agreement. The agreements is to reduce the global trade barriers hopes that:

1. It will benefit developing countries, whose products are often at a competitive

disadvantages in the global market place because of the trade barriers erected by the
developed countries.

2. It can stimulate economic growth in all countries by allowing the consumers to buy more
things at lower price.

Free Market Economy definitions:

According to Wikipedia, free market economy or free trade economy is the economy, where
government does not interrupt or discriminate the import or export process, by applying tariffs pr
subsidy or quota.

I s it really good fro the environment?

Most environmental groups and those who concerned with consumer protection and worker
health and safety, oppose some parts of the new version of GATT.

According to them, the current version of GATT:

 1. Will not provide ample economic benefits for everyone. At present 84% benefits are
enjoyed by the richest one-fifth of the world’s total population, where it is enjoyed by
only 0.9% to the poorest one-fifth.

2. It will increase the economic and political power of the multinational companies and
decrease the power of small business, citizens, and democratically elected governments.

3. It will weaken environmental and health and safety standards in developed countries.
Because, under new GATT, any country could be fined if any portion of it adopted
stricter environmental, health, worker safety, resource use or other standards the global
uniform standards established by the WTO, which is dominated by the multinational
companies in developed courtiers.

O, we can see the third point of environmental issue is seriously a threat to the environment.
Because every country has different environmental conditions. For example, in Bangladesh, the
depletion of forests and the use of natural gas is in a uncontrolled way. If we do not reduce these
things, it is possible that our gas reserve is finished and our forest, The Sunder ban, which is the
largest mangrove forest in the world, could be in danger in its existence. But for the free trade
economy, we can not put restrictions to the use of gas or forest depletion.

So, free trade economy is not good fro the environment. It should be revised keeping
environmental concerns in mind.

Bibliography:

1. www.wikipedia.org

2. Handout of ENV 214