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«Free movement prevents the fight against poverty»

If the free movement of goods, services, capital, and labor continues to be as free as it is now, neither Norway nor developing countries can solve their poverty problems, stated Fritz Holte, professor in economics.

The retired professor has written the book «Det alternative systemet» where he states that the Norwegian government’s goal to fight poverty in Norway and developing countries is inconsistent with the same government’s goal of free movement of goods, services, capital, and labor across the boarders.

Competition is too hard
«I argue this statement because the free movement lead to a competition which is so hard that many do not manage to participate and therefore falls outside working life,» Holte said.

Furthermore, Holte claims that if many fall outside working life, poverty must be fought by the government stepping up and ensuring that these people get an acceptable income.

However, currently the government can not afford to do so because due to the free movement, the competition with other countries is so important for Norway that Norwegian taxes can not be much higher than foreign taxes, stated Holte.

Bad for developing nations
Holte claims free movement also prevents industrial nations from having beneficial politics towards the developing nations.

«The problems the single nation has due to the competition are so large that the countries have to concentrate in order not to loose,» Holte stated.

Stortinget is going to debate how to fight poverty in developing nations this fall, and Holte wants in this regard to raise a debate connected to his theory.

«Neither the government, I, nor anybody else knows if the statement is right or not, but what we do know is that it is important if it is correct,» Holte said.

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