The Geography of Free Trade
Several countries in both the developed and developing world have witnessed a backlash against globalization. Yet, in some cases, the response from anti-trade forces has been only tepid and ineffective. Why do protectionist actors in developing countries sometimes fail to effectively exert pressure on their governments? This study uses evidence from Peru to suggest that geography can play a significant role in undermining the formation and clout of distributional coalitions that seek protectionism. Because trade liberalization can have uneven distributional impacts along regional lines, trade liberalization losers can find themselves in unfavorable conditions to associate and engage in collective action. Under these circumstances, few coalitions emerge to battle for protection in the policy arena, and when they do, geographic distance from decision-makers in the capital city can be the ultimate barrier to protectionist interests. The experience of protectionist interests in Peru in the 2000s highlights the powerful influence geography can have on trade policy outcomes.
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