World Trade Organization

Fight Poverty: Keep On Trading

We may be in the midst of global recession, but if countries react by curbing their trade with each other, it will only hurt the poorest among them.

That's the gist of the message delivered by Pascal Lamy, director-general of the World Trade Organization, in a recent Wall Street Journal opinion piece.

History tells us that no poor country has ever become wealthy without trade, Moreover, many developing country success stories — Singapore, South Korea, Chile, China and Malaysia, to name only a few — have, in recent decades, seen their national incomes grow by a percentage point or more per year as a result of open trade policies than would [not] have been the case had they remained closed. The extra funds generated during this period have enabled them to respond to the crisis with stimulus packages that have prevented the crisis from turning into a protracted recession with its inevitable human costs.

In 2005, the WTO adopted an initiative called "Aid for Trade" to support and encourage trade. The initiative does two things: It funds infrastructure projects like roads and electrical grids, and trains exporters on how to comply with the safety and quality standards of other countries.

This week the WTO is convening in Geneva with select development banks and aid organizations for Aid for Trade's annual review. In his Wall Street Journal opinion piece Lamy tells us that, "we have to make sure [Aid for Trade] is more and more effective in helping developing countries overcome their economic difficulties. It's what people expect from us today."

From the Archives

Free Trade Vs. Small Farmers

Previously filed under: Asia, Agriculture
Small farmers are the key in the debate surrounding agricultural subsidies, the issue which has long stalled the Doha Round of WTO talks.

From the Archives

Saving the Doha Round

Previously filed under: North America, Trade
In order to return to the negotiating table, Kimberly A. Elliot, a senior fellow at the Center for Global Development calls for change in U.S. agricultural policy.

From the Archives

The Quest for Investment

Previously filed under: Trade
Developing countries at the Doha round shifted the focus to agricultural subsidies. But they neglected the greatest challenge yet—guidelines for foreign direct investment.

From the Archives

A Floundering WTO - Part I

Previously filed under: Trade
Without WTO agreement on reforms before April 30th, the hopes of fair trade for developing nations could be postponed indefinitely.

From the Archives

A Floundering WTO - Part II

Previously filed under: Trade
Disunity in the ranks of the developing nations allows developed countries to maintain their trade barriers.

From the Archives

Disappointing Results at the Hong Kong Ministerial

Previously filed under: North America, Trade
Expectations for the talks were relatively low, and although a finalized agreement to conclude the round was not achieved, some optimism emerged.

From the Archives

Is Market Access the Answer to Poverty?

Previously filed under: Asia, Trade
Read the counterpoint argument to why a Doha Round deal in Hong Kong would be good for developing countries.

Stories We're Watching

As Growth Slows, India Awakens to Need for Foreign Investment

International Herald Tribune - Wed, 02/08/2012 - 08:26
India’s central bank and economic analysts predict that growth will fall sharply to 7 percent this fiscal year and remain sluggish.

Social responsibility and a new world order

Washington Post - Innovations - Tue, 02/07/2012 - 07:56
Just before the New Year, the London-based Center for Economics and Business Research announced that Brazil had overtaken the United Kingdom as the world’s sixth largest economy. Furthermore, it predicted that by 2020, India and Russia will also have overtaken all the European economic powers.

Aid for trade policy rears its ugly head

The Guardian's Poverty Matters - Mon, 02/06/2012 - 01:41
The UK government's dismay at not being granted the contract for Typhoon fighter jets in India is an indication that its controversial aid for trade policy is still very much alive.

Liberia's battle to put the lights back on

The Guardian's Poverty Matters - Sun, 02/05/2012 - 23:00
Ellen Johnson Sirleaf has set ambitious targets to restore the country's electricity supply. But will it meet them by 2015?

As Africa's consumers rise, so does inequality

Yale Global Online - Fri, 02/03/2012 - 10:17
Kenya struggles to spread the wealth from rapid growth.

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