How can we make trade fair for developing countries?
How can we make trade fair for developing countries?
There is a growing recognition that the international trade regime is neither free nor fair. For years, powers such as the United States and the European Union have dominated trade negotiations at the expense of the poorest nations. A new book by Joseph Stiglitz, Nobel laureate and former World Bank economist, and Andrew Charlton envisions what a true development round would look like if trade were made fair for developing countries.
Fair Trade for All is the first volume in the Initiative for Policy Dialogue (IPD)'s new book series, published by Oxford University Press. In this challenging and controversial volume, Stiglitz and Charlton illustrate a radical and realistic new model for managing trade relationships between the richest and poorest countries. Their goal is to ensure that trade promotes the development and well-being of all countries, and not only that of the most powerful.
Even before it was published, Fair Trade for All created a stir in the community of global policymakers. Over the past year, the book's recommendations were presented in Geneva, Brussels, at the World Bank, and, upon invitation from Kofi Annan, Secretary-General of the United Nations, at the U.N.
The book's release in December 2005 coincided with the final meeting of the Doha round of World Trade Organization (WTO) 'talks in Hong Kong. Launched in 2001, the Doha round was initiated to address the concerns of developing nations. This summit in Hong Kong, following the 1999 WTO meeting in Seattle and the 2003 meeting in Cancun, attempted to address issues left unresolved by previous gatherings. Anticipating the final meeting, Stiglitz and Charlton hoped to provide a framework in which the Doha round goals of lowering trade barriers and promoting fair trade could be met.
"The book brings together research with more than a modicum of advocacy," comments Joseph Stiglitz. "Our goal is to change the agenda of this meeting."
The authors provide policymakers with a concrete vision of the policies that would do the most to integrate developing countries into the world trading system, give them new trading opportunities, and then help them capitalize on these opportunities. They stress prioritizing reforms that yield the largest benefits for developing countries, help governments move towards equitable trade policies, and deal effectively with the implementation constraints faced by poor members.
According to Jeffrey Sachs, economist and Director of the Earth Institute, "Joseph Stiglitz and co-author Andrew Charlton offer us an insightful and challenging new study on how to make the world trading system truly supportive of international development. Professor Stiglitz's leadership in the globalization debate reflects his remarkable combination of scholarly excellence, extensive political experience, and deep commitment to social justice. This powerful combination shines through in this accessible and timely new book."
Fair Trade for All has set the stage for the release of numerous volumes; five books from the IPD Book Series are forthcoming in the next year. In Growth and Stability (Oxford University Press, May 2006), task force members lay out alternative macroeconomic policies for use by developing countries. Economic Development and Environmental Sustainability: New Policy Options (Oxford University Press, August 2006) provides new insights on the common roots of economic stagnation, poverty and environmental degradation. The majority of IPD's eighteen task forces will be publishing volumes in the near future.
"As the old aphorism has it, knowledge is power," explains Lauren Anderson, IPD Program Manager. "It is our hope that the information provided by this book series might play a small role in shaping the outcome of development policy around the world."
