Abstract

One of the most troubling features of international trade is that it often involves exchange between individuals facing dramatically different life circumstances, who therefore derive different levels of benefit from the exchange. Most obviously, wages are extremely low in underdeveloped countries. However, the principle underlying these wages is the same as the one the dictates wage levels in wealthy countries. It is, therefore, difficult to criticize the wages paid to ?pauper labor? without at the same time criticizing the way that capitalism functions as a whole. For those who would like to question aspects of globalization, without simply repeating the standard moralizing critique of capitalism, this poses particular difficulties. This paper offers some suggestions on how egalitarians can approach this issue. The central piece of conceptual apparatus introduced, in the service of this aim, is the distinction between a ?first-best?, a ?second-best?, and an ?nth best? set of normative principles. It is then suggested, first, that capitalism is acceptable to egalitarians only within a third-best framework, and second, that this low level of idealization imposes real constraints on how far one can go in criticizing trade practices at the global level