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A Quick Tour
May-June 2007
I won’t talk about quota values. That’s none of my business. Nor will I talk about the “early retirement” of dairy producer and hard-line militant, Jean-Luc Leclair, which is a sad affair. However, I will talk to you a bit about democracy and a lot about globalization turncoats. And one day, if you can still stand to have me around, I will talk to you about reasonable accommodations at the sugar shack!

The dairy producers I’ve known – I used to be a senior economist for their federation in the mid 1980s – were all very bright. And despite the infamous and turbulent milk war, they successfully brought peace back to the rank and file. And now, twenty years later, they repeated this brilliant undertaking.

In fact, they held their yearly meeting a few weeks ago. It was a great and grand event, a meeting where all delegates were incredibly well-mannered and both sides calmly and eloquently stated their points of view: either you control quota prices or you don’t? A somewhat emotional debate, nonetheless a long debate for which the voting results provided us with a perfect example of healthy democracy. Once again a far-reaching collective victory that will serve the dairy industry’s superior interests.

When a free-market guru sounds the alarm, we should all listen. Alan Blinder, none other than the
former vice-president of the Federal Reserve and renowned Princeton economist, is worried about the impact of globalization on economists, accountants, and computer specialists who may lose their jobs due to corporate relocation. Horrified, he declares that the technology that allows India’s white collar workers to work for cheap is an increasingly pervasive trend. He states that the transfer of these paid services toward India or Indonesia could affect more than 40 million ‘hard working’ Americans. Hello!

As long as plant workers and farmers were the only people affected, globalization was lauded as a wonderful step forward for mankind. Blinder was exactly the kind of economist who, with his customary compassion and on behalf of all exploited consumers, spoke of the absolute necessity of adapting to these new trade rules. In fact, this same school of thought must be the inspiration behind the rantings of the University of Saskatchewan’s Sylvain Charlebois who, from within the walls of his academic fortress, mercilessly assails supply management.

Speaking of clowns, let me reassure you: professor Blinder is not one of them. His credibility in the field and his academic legitimacy are world renowned.

He is the author or co-author of 17 books, including a textbook (Economics: Principles and Policy), which is in its 10th edition and was probably a main source of “torment” for more than 2 million university students. He wrote numerous scientific publications and news articles (with an acerbic wit), in addition to being a popular and sought out primetime commentator. Furthermore, he was an economic consultant to former President Bill Clinton.

With the drop in popularity of President Bush and the Republican party, traditionally “protectionist” democrats, who are closer to the common ‘man’ and the middle class, are closing in on government. And they simply ate up Blinder’s book.

This is worrisome to Pascal Lamy, the French Director-General of the WTO. He would rather conclude the interminable Doha development round before 2008 because he knows that with a democratic government leading America things are going to get a lot more complicated. A good point for supply management, which needs all the support it can get since it is now more isolated than ever on the international landscape.

Please forgive me, it’s getting late. I’m off to read the latest edition of the New York Times in which professor Blinder’s most recent literary exercise is summarized. I’m pretty sure this is going to be a good night.

 


Claude Lafleur
Chief Executive Officer
La Coop fédérée

 


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