Development, equity, and the WTO

My opinion of the World Trade Organization has probably shifted more than that for any other international institution, during the course of university study. The conception of the WTO as some sort of monolithic and powerful body, forcing countries to do things against their will does not seem like an accurate one. Where such pressures do exist, they are more parallel to the WTO (caused and driven by the preferences of member states) than self-arising from within. The inability of the WTO to enforce its rulings on trade – save through the highly problematic vehicle of allowing the country sinned against to raise its own tariffs – seems to underscore how weak the organization really is.

Naturally, all of the above assumes that free trade is generally a good thing. While there are undeniably problems – some of which can be well expressed using an economic framework of analysis – there are myriad advantages to global economic integration. Globalization needs to be modified so as to operate better as a process that aids in poverty reduction; likewise, it needs to become more environmentally balanced. With the Doha Round utterly stalled it isn’t clear how the WTO could contribute to either aim, a reasonable case can be made that it is at least not worsening either. A rules-based system like the WTO seems to hold out at least the possibility of a more just relationship between rich and powerful states and those that are poor. While the system is highly imperfect in practice, it does seem to have a small net positive effect.

All that said, since I need to argue that the WTO is a bad thing for developing countries this Thursday, I should start looking at the most eloquent and well defended expressions of the the position.

People interested in economic issues should have a look at Trade Diversion: a blog run by Jonathan Dingel, an M.Phil student in economics.

Author: Milan

In the spring of 2005, I graduated from the University of British Columbia with a degree in International Relations and a general focus in the area of environmental politics. In the fall of 2005, I began reading for an M.Phil in IR at Wadham College, Oxford. Outside school, I am very interested in photography, writing, and the outdoors. I am writing this blog to keep in touch with friends and family around the world, provide a more personal view of graduate student life in Oxford, and pass on some lessons I've learned here. View all posts by Milan