Transformations in
Business & Economics
- © Vilnius University, 2002-2004
- © Brno University of Technology, 2002-2004
- © University of Latvia, 2002-2004
Article
About the Ethical Implications of Wealth Disparity
William T. Bagatelas, Jana Kubicová, Bruno S. Sergi
ABSTRACT. This paper makes an ethical argument in favour of the reinterpretation of certain free trade policies. Examples are given regarding Germany, Mexico and Japan to let the reader understand the economic logic behind wealth disparity. The paper also focuses on IMF policies in Russia. Making resort to existing economic methodology, we explain relevant facts and the reader will find that growing wealth disparity is a serious threat and we propose that free trade models be defined in ethical terms first and theory second. While free trade proves the only conducive answer to the myriad problems plaguing international economic affairs nowadays – whether in the name of development or increasing trade – we offer a plea to any and all practitioners of free trade to match the ethics of their rhetoric with the reality of particular economic situations.
KEYWORDS: ethics, free trade, economic development, wealth disparity, effective economics.