Appendix
A Petition from the Candlemakers
Frédéric Bastiat*
From the Manufacturers of Candles, Tapers, Lanterns, Candlesticks, Street Lamps, Snuffers, and Extinguishers, and from the Producers of Tallow, Oil, Resin, Alcohol, and Generally of Everything Connected with Lighting.
To the Honorable Members of the Chamber of Deputies.
Gentlemen:
You are on the right track. You reject abstract theories and have little regard for abundance and low prices. You concern yourselves mainly with the fate of the producer. You wish to free him from foreign competition, that is, to reserve the domestic market for domestic industry.
We come to offer you a wonderful opportunity for applying your—what shall we call it? Your theory? No, nothing is more deceptive than theory. Your doctrine? Your system? Your principle? But you dislike doctrines, you have a horror of systems, and, as for principles, you deny that there are any in political economy; therefore we shall call it your practice—your practice without theory and without principle.
We are suffering from the ruinous competition of a foreign rival who apparently works under conditions so far superior to our own for the production of light that he is flooding the domestic market with it at an incredibly low price; for the moment he appears, our sales cease, all the consumers turn to him, and a branch of French industry whose ramifications are innumerable is all at once reduced to complete stagnation. This rival, which is none other than the sun, is waging war on us so mercilessly that we suspect he is being stirred up against us by perfidious Albion (excellent diplomacy nowadays!), particularly because he has for that haughty island a respect that he does not show for us.1
We ask you to be so good as to pass a law requiring the closing of all windows, dormers, skylights, inside and outside shutters, curtains, casements, bull’s eyes, deadlights, and blinds—in short, all openings, holes, chinks, and fissures through which the light of the sun is wont to enter houses, to the detriment of the fair industries with which, we are proud to say, we have endowed the country, a country that cannot, without betraying ingratitude, abandon us today to so unequal a combat.
Be good enough, honorable deputies, to take our request seriously, and do not reject it without at least hearing the reasons that we have to advance in its support.
First, if you shut off as much as possible all access to natural light, and thereby create a need for artificial light, what industry in France will not ultimately be encouraged?
If France consumes more tallow, there will have to be more cattle and sheep, and, consequently, we shall see an increase in cleared fields, meat, wool, leather, and especially manure, the basis of all agricultural wealth.
If France consumes more oil, we shall see an expansion in the cultivation of the poppy, the olive, and rapeseed. These rich yet soil-exhausting plants will come at just the right time to enable us to put to profitable use the increased fertility that the breeding of cattle will impart to the land.
Our moors will be covered with resinous trees. Numerous swarms of bees will gather from our mountains the perfumed treasures that today waste their fragrance, like the flowers from which they emanate. Thus, there is not one branch of agriculture that would not undergo a great expansion.
The same holds true of shipping. Thousands of vessels will engage in whaling, and in a short time we shall have a fleet capable of upholding the honor of France and of gratifying the patriotic aspirations of the undersigned petitioners, chandlers, etc.
But what shall we say of the specialties of Parisian manufacture? Henceforth you will behold gilding, bronze, and crystal in candlesticks, in lamps, in chandeliers, in candelabra sparkling in spacious emporia compared with which those of today are but stalls.
There is no needy resin-collector on the heights of his sand dunes, no poor miner in the depths of his black pit, who will not receive higher wages and enjoy increased prosperity.
It needs but a little reflection, gentlemen, to be convinced that there is perhaps not one Frenchman, from the wealthy stockholder of the Anzin Company to the humblest vendor of matches, whose condition would not be improved by the success of our petition.
We anticipate your objections, gentlemen; but there is not a single one of them that you have not picked up from the musty old books of the advocates of free trade. We defy you to utter a word against us that will not instantly rebound against yourselves and the principle that guides your entire policy.
Will you tell us that, though we may gain by this protection, France will not gain at all, because the consumer will bear the expense?
We have our answer ready:
You no longer have the right to invoke the interest of the consumer. You have sacrificed him whenever you have found his interests opposed to those of the producer. You have done so in order to encourage industry and to increase employment. For the same reason you ought to do so this time too.
Indeed, you yourselves have anticipated this objection. When told that the consumer has a stake in the free entry of iron, cola, sesame, wheat, and textiles, “Yes,” you reply, “but the producer has a stake in their exclusion.” Very well! Surely if consumers have a stake in the admission of natural light, producers have a stake in its interdiction.
“But,” you may still say, “the producer and the consumer are one and the same person. If the manufacturer profits by protection, he will make the farmer prosperous. Contrariwise, if agriculture is prosperous, it will open markets for manufactured goods.” Very well! If you grant us a monopoly over the production of lighting during the day, first of all we shall buy large amounts of tallow, charcoal, oil, resin, wax, alcohol, silver, iron, bronze, and crystal, to supply our industry; and, moreover, we and our numerous suppliers, having become rich, will consume a great deal and spread prosperity into all areas of domestic industry.
Will you say that the light of the sun is a gratuitous gift of Nature, and that to reject such gifts would be to reject wealth itself under the pretext of encouraging the means of acquiring it?
But if you take this position, you strike a mortal blow at your own policy; remember that up to now you have always excluded foreign goods because and in proportion as they approximate gratuitous gifts. You have only half as good a reason for complying with the demands of other monopolists as you have for granting our petition, which is in complete accord with your established policy; and to reject our demands precisely because they are better founded than anyone else’s would be tantamount to accepting the equation: + x = + -; in other words, it would be to heap absurdity upon absurdity.
Labor and Nature collaborate in varying proportions, depending upon the country and the climate, in the production of a commodity. The part that Nature contributes is always free of charge; it is the part contributed by human labor that constitutes value and is paid for.
If an orange from Lisbon sells for half the price of an orange from Paris, it is because the natural heat of the sun, which is, of course, free of charge, does for the former what the latter owes to artificial heating, which necessarily has to be paid for in the market.
Thus, when an orange reaches us from Portugal, one can say that it is given to us half free of charge, or, in other words, at half price as compared with those from Paris.
Now, it is precisely on the basis of its being semigratuitous (pardon the word) that you maintain it should be barred. You ask: “How can French labor withstand the competition of foreign labor when the former has to do all the work, whereas the latter has to do only half, the sun taking care of the rest?” But if the fact that a product is half free of charge leads you to exclude it from competition, how can its being totally free of charge induce you to admit it into competition? Either you are not consistent, or you should, after excluding what is half free of charge as harmful to our domestic industry, exclude what is totally gratuitous with all the more reason and with twice the zeal.
To take another example: When a product—coal, iron, wheat, or textiles—comes to us from abroad, and when we can acquire it for less labor than if we produced it ourselves, the difference is a gratuitous gift that is conferred upon us. The size of this gift is proportionate to the extent of this difference. It is a quarter, a half, or three-quarters of the value of the product if the foreigner asks of us only three-quarters, one-half, or one-quarter as high a price. It is as complete as it can be when the donor, like the sun in providing us with light, asks nothing from us. The question, and we pose it formally, is whether what you desire for France is the benefit of consumption free of charge or the alleged advantages of onerous production. Make your choice, but be logical; for as long as you ban, as you do, foreign coal, iron, wheat, and textiles, in proportion as their price approaches zero, how inconsistent it would be to admit the light of the sun, whose price is zero all day long!
A French political economist and a brilliant satirist who wrote extensively in the first half of the nineteenth century showing the absurdity of protectionist arguments. The “Petition” illustrates his masterly technique. It has become a classic in the history of economic thought. Reprinted from Frédéric Bastiat, “A Petition,” in Economic Sophisms, translated and edited by Arthur Goddard (Princeton, New Jersey: D. Van Nostrand, 1964); copyright 1964 by the William Volker Fund.
[“Perfidious Albion” is England, along with a typically French jibe at the English fog, which keeps the sun from interfering with artificial light in England as much as it does in France. During the 1840s, Franco-English relations were occasionally very tense.—TRANSLATOR.]
List of Participants*
Moderator
Said El-Naggar
Professor of Economics, Cairo University
Cairo, Egypt
Authors
Paul Chabrier
Director, Middle Eastern Department
International Monetary Fund
Washington, D.C.
Rupa Chanda
Economist, Policy Development and Review Department
International Monetary Fund
Washington, D.C.
Mohamed A. El-Erian
Deputy Director, Middle Eastern Department
International Monetary Fund
Washington, D.C.
Ian Goldin
Senior Economist, World Bank
Washington, D.C.
Bernard Hoekman
Trade Economist, World Bank
Washington, D.C.
Mylène Kherallah
Consultant, World Bank
Washington, D.C.
Naheed Kirmani
Chief, Trade Policy Division
International Monetary Fund
Washington, D.C.
Rakia Moalla-Fetini
Economist, Middle Eastern Department
International Monetary Fund
Washington, D.C.
Carlos A. Primo Braga
Senior Economist, World Bank
Washington, D.C.
Jesus Seade
Deputy Director-General
World Trade Organization
Geneva, Switzerland
Clinton Shiells
Economist, Policy Development and Review Department
International Monetary Fund
Washington, D.C.
Jamel Zarrouk
Senior Economist
Arab Monetary Fund
Abu Dhabi, United Arab Emirates
Participants
Fahed Al-Ibraheem
Acting Managing Director
Kuwait Investment Authority
Kuwait
Mohammed Al-Jasser
Executive Director
International Monetary Fund
Washington, D.C.
Ali Al-Khalaf
Director, Economic Affairs
Ministry of Finance and Economy
Doha, Qatar
LIST OF PARTICIPANTS
Faisal Ali-Khaled
Executive Director
World Bank
Washington, D.C.
Jassim Al-Kumar
Director, Economic Department
Organization of Arab Petroleum Exporting Countries
Kuwait
Abdraouf Al-Mubarak
Undersecretary, Ministry of Economy and Commerce
Abu Dhabi, United Arab Emirates
Hasan Ali Al-Nusif
Undersecretary, Ministry of Commerce and Agriculture
Manama, Bahrain
Abdalla Al-Qwaiz
Undersecretary, Economic Affairs
Gulf Cooperation Council
Riyadh, Saudi Arabia
Ibraheem A. Al-Sadoun
Legal Department, Directorate of Customs
Riyadh, Saudi Arabia
Ratib Al-Shallah
Chairman, Federation of Syrian Chambers of Commerce
Damascus, Syrian Arab Republic
Mustafa Al-Shimali
Undersecretary, Economic Affairs
Ministry of Finance
Kuwait
Amer Al-Tameemi
Chairman, Kuwait Economic Society
Kuwait
Suliman Al-Turki
Advisor, Ministry of Finance
Riyadh, Saudi Arabia
Ali Attiga
Amman, Jordan
Muncif Batti
Permanent Mission of Tunisia
Geneva, Switzerland
Hicham Bissat
Regional Manager, Arab Bank
Beirut, Lebanon
Hanaa A. Kheir El-Din
Head, Economics Department
Cairo University
Cairo, Egypt
Heba Handousa
Executive Manager, FRF
Cairo, Egypt
Mamoun I. Hassan
Director-General, Inter-Arab Investment Guarantee Corporation
Kuwait
Mohsen Helal
Commercial Counsellor
Embassy of Egypt
Vienna, Austria
Taher Kanaan
Industrial Development Bank
Amman, Jordan
Abdel-Kader Lecheheb
Permanent Mission of Morocco
Geneva, Switzerland
Samir Maqdisi
Deputy President, AUB
Beirut, Lebanon
A. Shakour Shaalan
Executive Director
International Monetary Fund
Washington, D.C.
Mohamed Siala
Secretary, Executive Committee
Export Promotion Board
Tripoli, Libya
Khaldoun Th. Talhouni
Permanent Mission of Jordan
Geneva, Switzerland
Arab Fund for Economic and Social Development
Abdelatif Y. Al-Hamad
Director-General and Chairman of the Board of Directors
Omar Al-Noss
Hussein Amach
Mervat Badawi
Ismail El-Zabri
Sameeh Masoud
Abdulhameed Zagallai
Arab Monetary Fund
Jassem Al-Mannai
Director-General and Chairman of the Board of Directors
Samir Abyiad
Faris Bin Jaradi
Jamal Zarrouk
International Monetary Fund
Ahmed Abushadi
Mohammed Al-Jasser
Paul Chabrier Rupa Chanda
Mohamed A. El-Erian
Naheed Kirmani
Rakia Moalla-Fetini
A. Shakour Shaalan
Clinton Shiells
World Bank
Faisal Al-Khaled
Ian Goldin
Bernard Hoekman
Mylène Kherallah
Carlos A. Primo Braga
World Trade Organization
Jesus Seade
The titles and affiliations listed are those held at the time of the seminar (January 1995).
Glossary
ACP | African, Caribbean, and Pacific |
AMU | Arab Maghreb Union |
APEC | Asia-Pacific Economic Cooperation |
CAP | Common Agricultural Policy (of the European Union) |
c.i.f. | Cost, insurance, and freight |
DSB | Dispute Settlement Body (of the WTO) |
EEP | Export Enhancement Program (U.S.) |
EFTA | European Free Trade Association |
FAO | Food and Agriculture Organization of the United Nations |
f.o.b. | Free on board |
GATS | General Agreement on Trade in Services |
GATT | General Agreement on Tariffs and Trade |
GCC | Cooperation Council for the Arab States of the Gulf (Gulf Cooperation Council) |
GSP | Generalized System of Preferences |
Maghreb countries | Algeria, Morocco, and Tunisia |
Mashreq countries | Egypt, Jordan, Lebanon, and the Syrian Arab Republic |
MFA | Multifibre Arrangement (Arrangement Regarding International Trade in Textiles) |
MFN | Most-favored-nation |
NAFTA | North American Free Trade Agreement |
n.e.s. | Not elsewhere specified |
OECD | Organization for Economic Cooperation and Development |
OMA | Orderly marketing arrangement |
OPEC | Organization of Petroleum Exporting Countries |
TPRB | Trade Policies Review Body (of the WTO) |
TPRM | Trade Policy Review Mechanism (of the WTO) |
TRIM | Trade-related investment measure |
TRIP | Trade-related intellectual property right |
UNCTAD | United Nations Conference on Trade and Development |
VER | Voluntary export restraint |
VIE | Voluntary import expansion |
WTO | World Trade Organization |