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By Max Kohnstamm

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This meant that the trade I GNP ratio of the great trading nations has, on average, roughly doubled since the war - evidence that the division of labour was working and barriers between nations had come down. We are certainly richer, and live in greater harmony with our partners, than we would have done without the great movement towards liberalisation which has marked the past quarter of a century. But a sign of the weakening of this movement is that trade increa:ses no longer outstripped those of production in recent years.

The European Community has a great stake in, and responsibility for, a viable international economic order. Yet this concept has little currency in the Community, and its responsibility is still too often conceived in regional terms. Largely in reaction to the experiences of the thirties, the founders of the post-war system pursued two objectives. One was economic: to achieve maximum welfare through the international division of labour. The other was political: to avoid a fragmented world, where everybody worked against everybody else's interest, a world without order, a world of war.

These separately became apparent, the Community began to consider the much more ambitious project of economic and monetary union. It may seem utopian to suggest, at a time when progress within the European Community is manifestly difficult and slow, that it is time we took our own theories seriously enough to apply them to the new reality and examine in which fields harmonisation, financial solidarity and joint management are already feasible and necessary on a global scale. But there is little hope that the world will stand still until the Community has completed its slow progress towards full economic union.

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