From Friends without Borders to Goods without Borders Services without Borders

Florian A. Alburo
Center for the Advancement of Trade Integration and Facilitation School of Economics, University of the Philippines

Outline
International Relations: Thoughts from the Past Global Social Networking: Enablers Transforming Networking into Trade Differences Between Barriers to Networking and Barriers to Trade Facilitating the Transformation
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International Relations: Thoughts from the Past

No great improvements in the lot of mankind are possible until a great change takes place in the fundamental constitution of their modes of thought.

John Stuart Mill

One of the greatest challenges for societies is how to make the best use of all the knowledge that exists. One way to approach the issue is through central planning by the state and the other is with dispersed planning through free markets Friedrich von Hayek If goods cant cross borders, the armies will F. Bastiat
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 A free market is an endless series of voluntary exchanges between two parties who both expect to benefit from them. M. Rothbard Somebody who only reads newspapers and at best books of contemporary authors looks to me like an extremely near-sighted person who scorns eyeglasses. He is completely dependent on the prejudices and fashions of his times, since he never gets to see or hear anything else. And what a person thinks on his own without being stimulated by the thoughts and experiences of other people is even in the best case rather paltry and monotonous. A. Einstein

Global Social Networking: Enablers

Expanding democratic states; the breakdown of communism Lesser government; deregulation Technology advances cellular, satellite, photography Internet Price of connectivity and access Changing social mores
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Source: Facebook

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Transforming Network into Trade

Why is the growth of social networking phenomenal (e.g. from less than a million users in 2004 to close to half billion in 2010)? Why is the Philippines among the top 10 users of the network? Why has this not translated into a more open economy for some countries among the top 10 Facebook users?
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 There is a wide difference between social and economic networking. The actors between the two are totally different even if some belong to both (businesses are in Facebook or Twitter). Economic transactions involve financial outlays and product movement (social networking grants gains for the hosts). Enablers in social networking easily cross borders (through communication).
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 Similarities are significant. There is an exchange of ideas, technology, economic conditions, etc. that were the content of early thinking on international relations. Linkages among networks are even wider in social than economic networking with same purpose expand activities. The mechanisms for the networking are the same IT, Internet, web sites. Products are also unique even in social networking.
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Differences Between Barriers to Networking and Barriers to Trade

More physical barriers to trade than networking (more electronic?). Many more institutions involved in trade than in networking (regulatory agencies but can be avoided). Wide range of individuals have stakes in trade than in networking (individual users are unique but minimal vested interests)
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 Constituency for trade is heterogeneous with conflicting goals and visions than networking sites. More intervention points in trade than in networking often resulting in manual processes. Product diversity is wider in trade than the products of networking sites. Trade portals are often necessary to provide links between users.
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Facilitating the Transformation

Classical thinkers considered border relationships to be critical factors in promoting international trade transactions. A strong constituency in border relationships can be a strong foundation for concrete policy for openness. The seamless nature of social networking illustrates a direction for removing barriers to trade.
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End

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