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Greenspan also warned governments against resorting to protectionism.
It was a clear signal, though, that the nations assembled in Qatar did not want to repeat the mistake of 70 years ago, when the United States and other nations deepened the Depression by resorting to protectionism when confronted with economic trouble at home.
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Britain was not the first country to resort to protectionism.
A Canadian Response This time around, Canada does not need to resort to protectionism to keep a strategic asset in Canadian hands.
In tough economic times, there is always the temptation to resort to protectionism as a means of shielding workers and companies from foreign competition.
Another important difference is that, in 1930, the world economy was already in deep trouble, and some countries had already resorted to protectionism.
Admittedly, there was no attempt to resort to protectionism but fiscal policy – taxes and public spending – was more restrictive in the early 1930s than during the recent financial crisis.
Is integration always perfect? No, but China and eastern Europe are examples of adept change.Points of principleThere's a dangerous tendency to resort to protectionism when things get tough.
But critics of the proposal fear that such a figure would be susceptible to political pressure, and would soon resort to protectionism in the name of safety.Besides, the problem might be solving itself.
If a deal is completed, it will be a rare move toward free trade at a time when politicians across the globe are under pressure to resort to protectionism.
Nobody practices those virtues all the time: The U.S. and Western Europe continue to resort to protectionism, for instance.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com