party to such agreements, however, it is difficult to prevent ‘leakage’ through a relocation of carbon-intensive activities to those non-signatories. An alternative or supplementary approach that is likely to achieve at least some emission reductions, and at the same time generate national and global economic benefits rather than costs, involves lowering coal subsidies and trade barriers. Past coal policies have encouraged excessive production of coal in a number of industrial countries and excessive coal consumption in numerous developing countries including transition economies. Phasing out those distortionary policies has both improved the economy and lowered greenhouse gas emissions globally – a ‘no regrets’ outcome or win-win Pareto improvement for the economy and the environment (Anderson and McKibbin 2000). Additional opportunities for reducing greenhouse gases through cutting energy subsidies are pointed to in the UNEP study by von Moltke, McKee and Morgan (2004).

# **_Communicable diseases_**

Communicable diseases are more common among the poor, so again trade reform’s contribution to poverty alleviation will in turn impact on human health in general and the reduced incidence of diseases in particular. Furthermore, the greater openness of economies ensures medicines and prevention technologies are more widespread and cheaper, particularly following the Doha WTO conference of trade ministers and the subsequent Decision of 30 August 2003 on the TRIPS Agreement and Public Health. That Decision by the WTO General Council ensures developing country governments can issue compulsory licenses to allow other companies to make a patented product or use a patented process under licence without the consent of the patent owner, while developing countries unable to produce pharmaceuticals domestically can now import generic copies of patented drugs made under compulsory licensing by other developing countries.

# **_Conflicts_**

Openness tends to break down the common prejudices that accompany insularity, and to broaden mutual understanding between people with different cultures and customs. It also expands economic interdependence among countries, which raises the opportunity cost of entering into conflicts with trading partners. In so far as it reduces income inequality across countries, then that too may diffuse tension between nations – a point that has even greater significance following the terrorist attacks of 11 September 2001. Indeed there is now statistical support for Immanuel Kant’s hypothesis that durable peace is supported by representative democracy, trade, and membership of international organizations: Oneal and Russett (2000) find that all three contribute independently to more peaceful relationships with other countries.<sup>34</sup> And casual observation suggests that more-autarchic economies tend to be less democratic.

Where openness involves also greater international migration, there tends to be less inter-cultural conflict and more social gains from multiculturalism. Conversely, it is in societies that resent immigrants and impose strict migration quotas where cultural clashes seem to be more common. Clashes between ethnic groups are

> 34 A recent survey of the evidence did not find a significant direct link between poverty and terrorism, however. Rather, Krueger and Maleckova (2003) concluded that terrorism was more a response to political conditions and long-standing feelings of indignity and frustration.

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