The twin medicines of democracy and free trade

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The  theory of liberalism talks about the importance of using international law to regulate the behaviour of states and non-state actors to maintain peace and ensure cooperation. Liberals have adopted the understanding of how law works in the domestic system to idealize a similar scenario in a community made up of states and non-state actors.

Goldstein (2005, p. 101) states that the long tradition of idealism (liberalism) holds that: morality, law and international organization can form the basis of relations among states. He said that human nature is not evil, idealists (liberalists) believe that peaceful and cooperative relations among states are possible. Furthermore, states can operate as a community rather than merely as autonomous self-interested agents. 

In the theory of realism, states use power to pursue their own interest in the context of an anarchic system lacking central enforcement mechanisms according to Goldstein (ibid.). He said power capabilities come into play as leverage in bargaining among states over the outcomes of conflicts. He distinguishes leverage into 2 groups; positive (rewards) and negative (punishment). He said in both cases the purpose is to influence the rational decisions and actions of another state so as to bring about a more favourable outcome for the actor using the leverage. Military force is an important form of leverage emphasized by realists over all other forms because of the inherent insecurity of living in an anarchic world.    

According to Burchill (2008, p. 59), he likened war to cancer. He said it was an ailment that human beings had the capacity to cure. The main treatment that liberals started administering in the eighteenth century to cure the disease was the twin medicines of democracy and free trade. The treatment is currently being used today in the twenty-first century. 

As mentioned by Burchill (ibid.), democratic processes and institutions would break the power of the ruling elites and cub their propensity for violence. Free trade and commerce would overcome the artificial barriers between individuals and unite them everywhere into one community. His chapter on liberalism highlights interesting details about both democracy and free trade.

The case of PNG helping Australia is an example of states cooperating as a community. As mentioned in the Joint Declaration of 2013, both states committed themselves to strengthen ties and deepen cooperation. The two medicines to treat the disease of war is captured in the Joint Declaration between PNG and Australia.

The medicine of democracy is expressed in Point 4 and 5 of the Joint Declaration. PNG and Australia are both independent constitutional democracies. We credit Australia for introducing us to this political and economic system as our former colonial master. 

Point 4 states that both countries are committed to the rule of law and believe in the independence of the judiciary. Also, good governance and freedom of speech as a foundation for stable, inclusive societies, and for ensuring sustained economic growth and development is mentioned clearly. 

Point 5 is about our commitment to the fundamental principle of equality for women and men. It talks about ensuring improved economic and social opportunities for women. Increasing the representation of women in leadership roles is another area that both countries will work together to achieve. 

Australia has used the League Bilong Laif (League for life) program to promote the fundamental principle of equality for women and men. Rugby League is a national sport in PNG. Hence, the emergence of the PNG Orchids women team has challenged the view that Rugby League is a male-dominated sport.  


The medicine of free trade is mentioned in Point 6. PNG and Australia are still working on an economic cooperation treaty to support free trade and rules-based investment processes. Both countries recognize the need to create an enabling environment for business, and acknowledge the role played by the private sector in economic development and service delivery. 

According to the Australian Department of Foreign Affairs and Trade, the partnership is implemented in association with the administrative arrangements set out in the bilateral Treaty on Development Cooperation (1999). The Department is leading the the negotiation with PNG to create an economic cooperation treaty which will replace the Development Cooperation Treaty with an umbrella economic co-operation agreement. Provisions for development cooperation will be incorporated within the new treaty.  

At the regional level, the multilateral trade agreement know as the Pacific Agreement on Closer Economic Relations (PACER Plus) is a regional economic agreement that covers goods, services and investment and established rules and commitments. The agreement concerns free trade between Australia, New Zealand and Pacific Island countries minus PNG.

PNG and Fiji's rejection is based on the understanding that the agreement is one sided. Together with Fiji, we feel that the agreement is more in favour of Australia and New Zealand. As reported on PNG Loop, it does not allow us to develop our infant industries and would restrict government regulation in other areas.

The usage of the twin medicines of democracy and free trade is captured in the PNG-Australia Joint Declaration. This helps us to see how theory is applied practically and helps us distinguish the liberalists view of international law from the realists. 

References:

Burchill, S. (2005). Liberalism. In S. Burchill et al, Theories of international relations (3rd ed.) (pp. 55-83). New York: Palgrave Macmillan.

Goldstein, J. (2005). International relations (6th ed.). Beijing: Peking University Press.

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