But trade is not entirely a natural phenomenon, it depends on
political will. Compare, for example, the starkly different policy
responses to two of the most major economic and financial disasters
of this century. When crisis set in during the 1930s, the
knee-jerk reaction was economic nationalism. As one country
raised its tariff barriers, so too did others in retaliation. Trade
plummeted, unemployment became entrenched, cooperation
between nations broke down and guns, soldiers and tanks took
over. The human and economic costs were catastrophic. In stark
contrast, when the Asian economies experienced a financial crisis
in the late 1990s, markets were kept open and sensible but
tough economic policy and regulatory decisions were taken. This
helped contain the crisis and it allowed the Asian nations to export
their way out of difficulty. Within a relatively short period of
time, these countries were on the road to recovery and fears of
worldwide recession were proven unfounded.