Thursday, August 22, 2019
The Protectionist Policies of Developed World Essay Example for Free
The Protectionist Policies of Developed World Essay Globalization is the process of rapid global economic integration by both developed and undeveloped countries. The principle of globalization aims to facilitate lower transaction costs and barriers of the movement of capital and goods (Cable, 1999; in Manning and Baines, 2004), in which the said countries are involved.  It can be said that globalization is the world market and the supply chain is the pipeline that channels the flow of supply. However, globalization may cause smaller and weaker economic role players (such as developing countries) to be at a disadvantage whenever they trade with highly developed and more influential countries.            From the point of view of participating poor countries from Asia, Africa and the Middle East to the world market, the negotiations on economic protectionist policies have been formulated and executed through the GATT-WTO (Government Agreement on Tariff and Trade of the World Trade Organizations). The protectionist policies of participating economies representing the developed countries are embodied in the said organization. The negotiations, as cited, has been framed primarily on: (1) integration of agricultural trade rules of non-agricultural sectors, (2) incorporation of developing countries into the trade system, (3) management of trade impact of cash-out in farm support to countries under OECD (Organization for Economic Cooperation and Development), and (4) provision of assurance on health and safety for consumers (Josling, 2003). In short, the framers of the negotiations under the GATT-WTO sufficed as the protective principles or safety net to the rules on participating in the world market. However, it is common knowledge within the agricultural and agro-industrial sector that among the impacts of the GATT-WTO to the poor and developing economies is its incapability to meet the volume of supply to the exporting countries, to which the efficiency of production is unable to sustain the given supply contract of exports. In this predicament, the ‘relatively poorer’ or developing countries would then cooperate with direct economic resource managements, exemplified by joint venture investments in the form of import and exportâ€â€wherein foreign traders’ capital investment in manufacturing basically gains from cheap raw materials and labor. In effect, the poor and developing countries are dictated by the commodity pricing together with the ruling on supply regulation that has affected the domestic revenue generation. Another consideration on the impacts of the GATT-WTO to the poor and developing economies is its incapability to meet the volume of supply to the exporting countries, to which the efficiency of production is unable to sustain the given supply contract of exports. To cite an example, the withdrawal of cotton subsidy to several countries of Eastern and Western Africa has largely affected the production performance, in which cotton production in developing countries has significant role in poverty alleviation (Gillson, Balcombe, and Page, 2004). To cite, the GATT-WTO is taking part in agricultural trade reforms being represented by the rich and developed countries but benefit low-income farm households (Hertel, et.al., 2007). In this regard, it may be said that the protectionist policies of developed countries protect their interest at the global distribution and acquisition of economy. Therefore, despite the continuing negotiation on GATT-WTO, the restriction on agricultural trade has great impact to the poor and developing countries. On the other hand, the oversupplying of imported agricultural equipment and technologies that claim to enhance production efficiency serves the ploy of powerful countries to impose the requirements on exports and imports. The imposition of the so-called efficient and qualitative agricultural products remains a barrier to the poor and developing countries to compete in the world market. Thus, the ultimate impact is the over-dependency of the poor and developing countries to export-import economic orientation and controlling of the rich countries to the overall economic supply chain that amass the domestic distribution of economy and, in effect, leaves the poor countries in extreme poverty. List of References  Gillson, I., Poulton, C., Balcombe, K. and Page, S. (2004). Understanding the impact of Cotton Subsidies on developing countries. Working Paper [29 Febraury 2008] Josling, T. (2003) Key Issues in the World Trade Organization Negotiation on Agriculture.            American Journal of Agricultural Economics, 85(3), 663-67, American Agricultural            Economics Association. [29 February 2008] Leclair, M. (2002) Fighting the Tide: Alternative Trade Organizations in the Era of Global Free            Trade. World Development Vol. 30, No. 6, pp. 949–958, 2002. Available from            www.elsevier.com/locate/worlddev [29 February 2008] Manning L. and Baines, R.N. (2004) Globalization: a study of the poultry-meat supply chain.            Available from [http://www.emeraldinsight.com/0007-070X.htm [29 February 2008] Steinberg, F. (2008) The Impact of the Emerging Powers on the World Economy. Real Instituto            Elcano (ARI) International Economy and Trade, Issue: 1 January 2008. [29 February 2008] Thomas W. Hertel, T., Keeney, R., Ivanic, M. and Winters, L.A. (2007) WTO agricultural reforms.            Economic Policy, Printed in Great Britain [29 February 2008]
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