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Tuesday, August 7, 2012

Distributive Justice and WTO

I have always been fascinated by the Rawl's Theory of Distributive Justice. During college days, I worked on this theory in light of International Trade and WTO. Here is my work.


Introduction
I would like to proceed in the following manner. First of all, I would like to discuss a bit about John Rawls and his theory on Distributive Justice. Secondly, I would be discussing his two principles of Justice. Thirdly, I would talk about how these principles can be given an international perspective and if at all, they can be given an international perspective or not? My concluding chapters would include the criticisms, the positive aspects and my personal remarks on the topic.
In my opinion, John Rawls Theory is a very controversial theory. The manner in which John Rawls has talked about his theory includes only the municipal or the local perspective. I do not know whether or not, would I be doing justice to his theory by far fetching it to international arena especially to WTO and the Multi-lateral Trading System?
For the purposes of this paper, I am discussing only Rawls’s account of Distributive Justice.
John Rawls
John Rawls was an American political philosopher in the liberal tradition. His theory of justice as fairness envisions a society of free citizens holding equal basic rights cooperating within an egalitarian economic system[i]. He has written various books which talk about the concept of Justice and more particularly, the concept and need of Distributive Justice. His principle works are[ii]:
§  Political Liberalism. The John Dewey Essays in Philosophy.
§  The Law of Peoples: with "The Idea of Public Reason Revisited." 
§  Collected Papers. 
§  Lectures on the History of Moral Philosophy.
§  Lectures on the History of Political Philosophy.
The Theory of Distributive Justice
John Rawls talks about patterned conceptions of Distributive Justice which proceed on the basis that there is some overall pattern of distributive justice that is ought to be achieved. He advocates that his theory leads to fairness and his principles are just and fair[iii].
To simplify things, there are following concepts and notions discussed in his theory.
1.      Veil of Ignorance
2.      Reflective Equilibrium
3.      Original Position
4.      Principles of Justice
Let us discuss all of them in brief.
Veil of Ignorance
It says parties to the original position know nothing about their particular abilities, tastes, and position within the social order of society. The veil of ignorance blocks off this knowledge, such that one does not know what burdens and benefits of social cooperation might fall to him/her once the veil is lifted. With this knowledge blocked, parties to the original position must decide on principles for the distribution of rights, positions and resources in their society[iv].
Following is an excerpt from his book.
"no one knows his place in society, his class position or social status, nor does anyone know his fortune in the distribution of natural assets and abilities, his intelligence, strength, and the like. I shall even assume that the parties do not know their conceptions of the good or their special psychological propensities. The principles of justice are chosen behind a veil of ignorance.[v]"

Reflective Equilibrium
Reflective equilibrium is a state of balance or coherence among a set of beliefs arrived at by a process of deliberative mutual adjustment among general principles and particular judgments[vi].
Original Position
Original Position is the hypothetical society that Rawls has conceived in his theory. Rawls develops what he claims are principles of justice through the use of an entirely and deliberately artificial device he calls the Original position in which everyone decides principles of justice from behind a veil of ignorance.
Rawls claims that parties that are behind the veil of ignorance will formulate principles which are just and fair because they do not know anything about themselves and thus, whatever decision they take will be impartial and unbiased[vii].
Principles of Justice
First Principle: Each person has the same indefeasible claim to a fully adequate scheme of equal basic liberties, which scheme is compatible with the same scheme of liberties for all;
Second Principle: Social and economic inequalities are to satisfy two conditions:
a. They are to be attached to offices and positions open to all under conditions of fair equality of opportunity;
b. They are to be to the greatest benefit of the least-advantaged members of society (the difference principle).
These principles were previously different in his book “A Theory of Justice” but later on, he molded his principles of Justice as mentioned above in his work “Justice as Fairness”. Discussing these principles with relation to municipal scenario will not be relevant to our topic. Hence, I am skipping that exercise. I am directly jumping to the exercise where I would determine whether or not these principles could be given an international perspective with relation to WTO.
Distributive Justice and WTO
Let us discuss the first principle in relation to WTO.
First Principle: Each person has the same indefeasible claim to a fully adequate scheme of equal basic liberties, which scheme is compatible with the same scheme of liberties for all.
We see that this principle talks about liberty. Liberty includes all the principles such as freedom, rule of law etc. Apart from basic liberties, this principle also talks about scheme of liberty and its compatibility. This basically means that Rawls is not only concerned with formal equality or liberty in a formal sense but also in a substantive sense. In other words, we can say that justice must not be only done; it must be seen to be done.
Now, if we look at WTO, we will see that WTO talks about LDCs, Developing Countries and developed countries. It contains certain provisions which provide relaxation to LDCs in various aspects of WTO[viii]. Thus, in a formal sense WTO takes into considerations needs of those who are not developed. But in the real sense of the term, we see that not much has been done for making sure that LDCs voice is heard on the WTO forum. Rights of LDCs exist only on the paper.
If we apply Rawls first principle, we will find that much needs to be done for the poor countries whose voices are not being heard. Substantive Justice needs to be done to them. They have equal basic liberties in theory but in reality, they are not compatible with the scheme of liberties of all i.e. the developing and the developed countries.
The basic premise of this argument is that economic efficiency and power must not be a criterion for providing rights and liberties to a nation.
Second Principle
Second Principle: Social and economic inequalities are to satisfy two conditions:
a.         They are to be attached to offices and positions open to all under conditions of fair equality of opportunity;
b.         They are to be to the greatest benefit of the least-advantaged members of society (the difference principle).
This is a principle which talks about inequality. According to Rawls, inequalities can exist only in these two conditions.
Coming to the first proviso, we see that it is a corollary of the first principle itself. It talks about fair equality of opportunity to be attached to offices and positions. We observe that in International forums, a lot of developing and LDC countries officials are being offered the highest offices. But the important thing to see is that whether or not, the officials who are in that high office are able to discharge their functions effectively? In my opinion, the answer to this is in negative. This is because of the fact that even though LDC and Developing countries are offered the highest offices, they are being pressurized a lot[ix]. If they take any decision which is not in favor of the Developed countries, their parent country suffers in the long run. As a consequence, subsidies are withdrawn and concessions are not given to that country.
Another thing to see is that all the countries have access to the Dispute Settlement of WTO. However, the cost of litigation in this system is abnormally high. Thus, even though they have access, they are not able to realize the benefits because of high costs which they cannot afford[x].
Another important point to note is that the manner in which officials of developing countries and LDC are appointed is a kind of trade-off in itself. It is done in order to appease the ruling class of that developing country or LDC so that developed countries can ask for concessions from that country. Thus, there is no bona fide intention of uplifting these LDCs and bringing them to a level playing field. Hence, the purpose of the first proviso is also forfeited in WTO[xi].
Let us come to the second proviso i.e. the indifference principle. Intellectuals have argued that there is a need for an international indifference principle. If we apply this principle to WTO, we see that concessions, subsidies and favors are imperative for developing countries and LDCs on a case to case basis. Rawls says that if such favors are given to the least advantaged class, they would reach a level playing field in the long run. Thus, this principle is a fair one since it removes the unjust in the society[xii].
However, if we talk about international perspective, this principle might not hold much ground. It is the developing countries and LDCs which have most of the natural resources[xiii]. The developed countries give concessions and favors to LDCs in order to exploit their natural resources. This is especially true in the African Countries. Developed Countries set up NGOs and send their governmental missions in the name of uplifting the countries position and improving their living standard. But these NGOs act as intelligence agencies for the developed countries. These NGOs in the name of social justice programs collect valuable information about the LDCs and send them to these developed countries. With the help of this information, the developing countries assess the political climate of that country and it further helps them in exploiting these small countries.
But in spite of all these things and the ulterior motives, the developing countries and LDCs are getting benefitted a lot. The cost that they have to pay is obviously high and painstaking. But at least something is being done. Thus, there is a need for transparency when we talk about implementing inequalities. The hidden and ulterior motives must not exist while carrying on such programs.  

Criticisms
1.      It is yet to be explained in a satisfactory way why the relative position of the least advantaged is more important than their absolute position.
2.      Trade Liberalization is not always good for a country. It might wipe off the small players in that country. This is big disadvantage because multinationals try to hijack the economy of that country. A classic example is that of Egypt where local textile players were wiped off because of liberal trade policies and created a widespread social harm in the society[xiv].
3.      Libertarians object that the Difference Principle involves unacceptable infringements on liberty. For instance, the Difference Principle may require redistributive taxation to the poor, and Libertarians commonly object that such taxation involves the immoral taking of just holdings.
4.      Amartya Sen critiques and attempts to revitalize A Theory of Justice in his book, The Idea of Justice[xv]. He defends the basic notion of justice as fairness but attacks the notion that the two principles of justice emerging from the Original position are necessary. Sen claims that there are multiple possible outcomes of the reflective equilibrium[xvi] behind the veil of ignorance.
5.      Dworkin says that hypothetical contracts are not contracts. Why should we care about hypothetical agreements?
6.      These principles were originally meant for the local or municipal application. The implications of applying this theory to International perspective are still not clear.
7.      Right now most of the developing countries and LDCs are in a transition phase from a feudalistic economy to an industrial economy. Thus, by applying these principles, long term benefit is assured but the present generations shall have to suffer.
Positive Aspects
1.      WTO is an international forum and applying this theory to an international forum means that we are talking about fairness and justice. This is a right step in the right direction. However, the manner in which it is being implemented needs to change[xvii].
2.      Justice as Fairness dictates for wealthier states in response to inequality. Thus, it creates an obligation which will benefit the poorer nations.
3.      Trade Liberalization and forums such as WTO will eventually led to more transparency and fairness in the policies of a country[xviii].
4.      This will also lead to decrease in corruption because the society will become more and more industrial and in an industrial society everyone gets what his/her worth his.
My Comments and Conclusion
I have a lot of doubts regarding the applicability of this theory. Firstly, I do not agree with the concept of the veil of ignorance. I feel it is a utopian concept and has no relevance in the present day context. It is not much possible to make WTO a forum where the countries know nothing about themselves. Today is an age of information. It is definitely absurd to think about veil of ignorance today.
Also, Rawls thinks that members of his society will not make any errors in reasoning[xix] because they will be clouded by veil of ignorance and this is will eventually lead to a just society. This is again indigestible because there cannot be any veil of ignorance in a forum like WTO and secondly, every country will think about his/her own interest first. They have their own problems to address.
Giving too much subsidies and favors to small countries has caused a serious political upheaval in the developed countries. The citizens of these countries are asking when there are problems in their own nation, how can they think about helping others?
I agree with the theory in principle and its application to International Arena especially to WTO. This is because social and economic rights of individuals as well as countries are very important. The indifference principle can address this issue. However, the form has to change. In the present form, the developed countries are only exploiting the smaller countries.



[i] John Rawls, Justice as Fairness: A Restatement, Cambridge, Massachusetts: Belknap Press, 2001.
[ii] Wenar Leif, John Rawls- Biography, The Stanford Encyclopedia of Philosophy, 2008.  
[v] John Rawls, Justice as Fairness: A Restatement, Cambridge, Massachusetts: Belknap Press, 2001
[vii] John Rawls, A Theory of Justice, Cambridge, Massachusetts: Belknap Press, 1971
[viii] A good example is that of Patent issues in access to AIDS drugs in Kenya. This issue has been discussed in a WTO sponsored case study. It explains how laws can be relaxed in certain situations such as that of Kenya’s AIDS drugs. http://www.wto.org/english/res_e/booksp_e/casestudies_e/case19_e.htm
[ix] A good example is that of ROKS Cheonan sinking case. In this case, Ban Ki Moon, the UN Secretary General has been accused of bias as he asked for action against North Korea acting as a puppet of US and promoting his country’s interests.
[x] A WTO Sponsored Case Study talks about Dispute Settlement between Developing Countries between Argentina and Chilean Price Bands. The paper discusses the abnormally high cost of litigation and its time consuming nature. http://www.wto.org/english/res_e/booksp_e/casestudies_e/case1_e.htm
[xi] A Conference sponsored by Commonwealth Secretariat talked about Implementation of UN Convention against Corruption and challenges faced by it. This conference discussed how appointments in International Organizations are based on Political Loyalty rather than merit and the mala fide intention involved in such appointments. http://www.chathamhouse.org/sites/default/files/public/Research/International%20Law/ilanticorruption.pdf
[xii] Richard Arneson, Rawls, Responsibility and Distributive Justice, Cambridge University Press, 2008.
[xiii] A good example is that of the word “diamond” which hardly conjures images of peace and prosperity in the context of Sierra Leone, and oil has been more curse than blessing for Angola, Equatorial Guinea, Nigeria, and many others.
[xiv] Thomas, Chantal, "Democratic Governance, Distributive Justice and Development" (2008). Cornell Law Faculty Publications.
[xv] Amartya Sen, The Idea of Justice, Cambridge MA: Belknap Press of Harvard University Press, 2009. 
[xvi] Reflective equilibrium is a state of balance or coherence among a set of beliefs arrived at by a process of deliberative mutual adjustment among general principles and particular judgments.
[xvii] Fairness in the WTO Trading System, Andrew G. Brown, Amherst, MA and Robert M. Stern, University of Michigan, 2009.
[xviii] Thomas, Chantal, "Democratic Governance, Distributive Justice and Development" (2008). Cornell Law Faculty Publications.
[xix] John Rawls, The Law of Peoples: with "The Idea of Public Reason Revisited." Cambridge, Massachusetts: Harvard University Press, 1999 

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