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Contributions from
the Column
Studies and reports
The world trade system leaves poor countries too little scope
Slight rise in German ODA
Africa: back to the roots is the wrong direction
Humanitarian aid can be impartial, but not neutral
Immunisation initiative: Nelson Mandela calls for participation
German hearing on GATS: different positions
Proposal for insolvency rights buried quietly
An oil pipeline
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UNDP report
The world trade system leaves poor countries too little scope
Fundamental reforms of the present world trade system are demanded by a new study by the UN Development Programme (UNDP). The lengthy paper, titled 'Making Global Trade Work For People', makes the basic assumption that free world trade can contribute to poverty reduction and development. But, it adds, for that the international trade system must be designed more flexibly and aligned more strongly on the needs of the poor countries. The study says the basic problem of the present system is that it is oriented on the thesis that trade liberalisation results inevitably in growth and development. Rather, however, an opening to the world market can bring a country forward only if it has already achieved a certain standard of development. This was also the historical experience of the industrialised nations and the Southeast Asian 'tiger states'.
The international trade system at present leaves too little scope for a development-oriented state policy, the study says. A number of reforms in institutional and content terms is needed at the World Trade Organisation (WTO) to enlarge the room for manoeuvre. For instance, the WTO principle of the 'single undertaking', by which only complete negotiating packages can be approved, must be eased. The developing countries must be able to reject from a package such rules as are disadvantageous for them. In addition, the study goes on, the representation of the poor countries at WTO headquarters in Geneva must be improved and greater account taken of their weak position in trade disputes. The latter could be achieved by, for example, fining countries that failed to comply with a WTO disputes panel decision, since in the case of most developing countries the (permitted) threat of trade sanctions is not very effective.
The study says reforms of content must be implemented in the agricultural sector above all (dismantling of trade barriers and subsidies). It cites the textiles sector as an example of the need for flexible rules. It is true, it says, that the liberalisation of the markets for textiles and clothing planned for the end of 2004 will be of great advantage to many developing countries. But poor countries, above all, such as Bangladesh, whose industries are not up to coping with increasing competition, could suffer big losses. Therefore exemptions must apply to them. The report adds that the negotiations on a general agreement on trade in services (GATS) are an example of how the poor countries are cheated in international trade rounds. It says the industrialised nations want to see the opening of all service sectors in which they have advantages. But they do not want to hear anything about opening their labour markets, by which the poor countries could profit. (ell)
Netressourcen:
The report is posted on the UNDP Website at: www.undp.org/dpa/publications/globaltrade.pdfwww.weltbevoelkerung.de
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