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Sunday, May 28, 2006

Holes in the Fence

What does a national border represent in a world of electronic communication, multinational corporations, and increased migration of both labor and business?:

Borders Aren't About Maps, by Moisés Naím Sunday Outlook. Washington Post: A country's borders should not be confused with those familiar dotted lines drawn on some musty old map of nation-states. ... Where is the real U.S. border, for example, when U.S. customs agents check containers in the port of Amsterdam? Where should national borders be marked when drug traffickers launder money through illegal financial transactions that crisscross the globe electronically, violating multiple jurisdictions? ... And when U.S. health officials fan out across Asia seeking to contain a disease outbreak, where do national lines truly lie?

Governments and citizens are used to thinking of a border as a real, physical place: a fence, a shoreline... But while geography still matters, today's borders are being redefined and redrawn in unexpected ways. They are fluid, constantly remade by technology, new laws and institutions, and the realities of international commerce -- illicit as well as legitimate.

They are also increasingly intangible, living in a virtual and electronic space. In this world, the United States is adjacent not just to Mexico and Canada but also to China and Bolivia. Italy now borders on Nigeria, and France on Mali. These borders cannot be protected with motion sensors or National Guard troops.

Political unions, economic reforms and breakthroughs in technology and business came together to revolutionize the world's borders during the 1990s. It was a decade during which a global passion for free markets erupted.... Meanwhile, new technologies were vastly reducing the economic and business importance of distance and geography. The only prices that dropped faster than shipping a cargo container from Shanghai to Los Angeles were those for sending e-mail, making phone calls, or rapid-firing text and images across borders.

With borders much more fluid, opportunities for profit multiplied and cross-border activity boomed. ... Today's borders are violated, enforced and remade not only on the ground but also in cyberspace ... and the virtual world of international finance. ... When an immigrant living in the United States sends her ATM card to her children in the Philippines and they draw money from her U.S. checking account, where has the transaction taken place? Did the kids cross a border to tap the funds from an American bank? In a sense, they did -- the ubiquitous ATM has become a powerful, easy-to-use, border-crossing tool...

National boundaries are also being transformed by new -- or newly empowered -- international institutions. For example, ... on ... trade, the borders that matter may be drawn at the WTO headquarters in Geneva as much as anywhere else.

The fluid, unpredictable nature of modern borders is evident even among the most geographically isolated and remote nations on earth. ... narco-traffickers regularly and swiftly connect Bolivia's remote Chapare region, where coca is cultivated, with Miami or New York... In major cities across the globe, the availability of banned merchandise stands as a monument of sorts to nations' eroding sovereignty -- no matter the billions of dollars that governments spend seeking to keep such goods from ... penetrating their borders.

In 2004, the Guardian published a dispatch from the banks of the Yalu River, on the border between China and North Korea. "Here and there shadowy figures can be seen on both sides of the misty river quietly carrying out an illegal -- but thriving -- trade ...," wrote Jonathan Watts.

If a paranoid police state such as North Korea is incapable of controlling its borders and deterring illicit trade, there seems to be little hope for open, democratic and technologically advanced nations...

"Closing the border" may appeal to nationalist sentiments and to the human instinct of building moats and walls for protection. But when threats travel via fiber optics or inside migrating birds, and when finding ways to move illegal goods across borders promises unimaginable wealth or the only chance of a decent life, unilateral security measures have the unfortunate whiff of a Maginot line.

Defining the extent of labor and product markets when both business and labor are mobile, and when some goods can be processed and distributed electronically, is a challenge.

    Posted by on Sunday, May 28, 2006 at 12:06 AM in Economics, International Finance, International Trade, Politics | Permalink  TrackBack (1)  Comments (1)

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    [Source: Economist's View] quoted: What does a national border represent in a world of electronic communication, multinational corporations, and increased migration of both labor and business?: Borders Aren't About Maps, by Moiss Nam ... [Read More]

    Tracked on Sunday, May 28, 2006 at 09:55 PM


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