Economic security and free trade

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The 1994 Human Development Report is a very important document. I think the report changed the way we think about the concept of security in international relations. 

One particular category of human security that is connected to our discussion on liberalism is economic security. The report defined economic security as:
When you look at the pillars of APEC, the trade and investment liberalization pillar epitomizes liberal values. For example, free trade is based on the value of freedom. We want states to trade freely across borders in order to make goods and services affordable for the average person. 

This understanding is connected to the definition of economic security. The goods that are traded are in most cases manufactured in factories where human labour is needed. In other words, human beings are engaged in productive or remunerative work in order to manufacture the goods that are needed domestically as well as internationally.   

When we charge tariffs, then it makes the prices of the goods costly. When it is costly, then the customers will need to shop else where. This means that the particular company will make a loss because demand will be low. 

On the other side of the coin, consumers who are found on the bottom of the economic class pyramid will be marginalize in their choices. They now have to either choose between a poor quality good or a high quality good. Since they do not have the buying power, due to no basic income, they will settle for a poor quality good.

I talked in class about the price fluctuation of Pepsi. Due to high import tariff by PNG Customs, shops in Madang especially MST supermarket increased the price of a carton to K50, and the unit price to K3. This information was given to me by the a Chinese entrepreneur operating in Madang town.

A few years ago the price used to be K25 for a carton of Pepsi. However, today the prices is between K37-K39. The price is not stable, it depends on the supply and transportation issues.

Apart from the Pesi case, we have the case of Pauls milk. In the last few years the price of milk has increased. In 2017, it was K5.50 for a carton but this year (2018) because of the change in the budget where the government put an end to the tariff reduction policy. The price of milk has gone up to K6.50.

The flip in the government's approach is in the best interest of our small to medium enterprises. Furthermore, it is a win for economic security.

Innovative Agro Industry has already created employment for many in Port Moresby at the Illimo Dairy Farm. Their move to Lae is another step in the right direction. It will create more jobs for our vets, food scientist and others.

Unlike Australia, we do not have the a publicly financed safety net. When we are unemployed and looking for jobs we do not have a newstart allowance or  youth allowance. 

The youth allowance is interesting. Young people living in Australia who are in your age group gets support from the government while they are looking for jobs.

We have the wantok system, where unemployed young people like you still live with your parents. You depend on the fortnightly income of your parents for your daily necessities. Apart from your parents, you also depend on your siblings and extended family members for financial support. 

When we look at economic security, this system of ours helps us to survive. Without our wantoks, life would be very difficult. This point is expressed well in this statement found in the report:
I was once an unemployed graduate who lived with my parents. My parents allowed my wife and son to accompany me in our family home. We had to make ends meet by selling sweet potatoes and chickens at the Kundiawa market.

The feeling of insecurity or anxiety causes one to serious think about life. During this stage of one's life you will regret the choices you made that brought you to where you are. However, one important thing is to use the experience as motivation to be a better person.   

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