The Global Economy
The Streit Council supports deeper economic integration among democratic states as a basis for global economic growth and democracy promotion. Currently, these states account for 74% of the world’s economic output, 73% of all foreign direct investment, and 65% of all trade. By removing barriers to trade and investment with each other and pursuing a common market and monetary framework, they can boost their economic growth and enhance their collective leverage in negotiating for a more open global economy. Actual and proposed steps in this direction have mostly centered on the transatlantic area and have included the creation of the Transatlantic Economic Council, repeated calls for a more open transatlantic market, proposals for a transatlantic free trade area, and proposals for a transatlantic monetary framework.
In addition to driving global economic integration and growth, this approach would also improve the ability of these states to promote democracy beyond their frontiers and ultimately lay the foundation for an enduring world order. The market(s) of these democracies, acting as a magnet to non-democratic states seeking access, would lend support to democratic impulses and create strong incentives for reform. The European Union’s Neighborhood Policy and membership conditions have demonstrated that the prospect of enhanced market access is an effective tool for promoting democracy.