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Empirical Issues in Management:

Introduction

Recommendations of the World Trade Organization – WTO on reducing barriers to trade and integrating cross border economies seem to have raised a number of problems (Busch, 2008), (Evenett, 2005). Some of the problems relate to governance (Ostry, 2000), acceptance of the recommendations by member countries (Rose, 2005), institutional changes to remove barriers to trade and coping with resistance by some member countries that see WTO as a tool to take away their livelihood (Steinberg, 1998), (Zimmermann, 2005).

Objectives

The thesis frames the following hypothesis:

  • To examine the governance and behavior of government originations and NGOs in the WTO process.
  • To examine the impact on farmers, small manufacturers when trade barriers are lifted
  • To examine the extent by which the enlarged import bill would affect the economy
  • To examine and rationalize the resistance offered by farmers, small manufacturers, and various governments for WTO process

Hypothesis

The thesis frames the following hypothesis:

  • Stakeholders such as government agencies, NGOs, farmer and industrial lobbies would attempt to influence the governance and implementation, depending on where they stand (Huijgh, 2007), (Finger, 2007).
  • By indiscriminately removing trade barriers, farmers and small manufacturers in developing countries face loss of livelihood (Evans, 2006).
  • The Doha and the Uruguay rounds of WTO favor developing nations (Davis, 2000).

Analysis

Review of the available literature suggests that there is intense resistance from governments, farmers and small manufacturers in developing countries as WTO laws would reduce the subsidies and soft loans given by their governments (Sally, 2008). At the same time, developed countries, with their modern technology, adequately subsidized by their governments under different names would force countries to import food grains and consumer goods (Chorev, 2007). Such practices would force the governments of developed countries to abort their implementation plans and dilute the laws as they would be faced with increased internal resistance (Zimmermann, 2005). Review also shows that by increasing the import bill, the foreign exchange outflow would be greatly reduced (Rose, 2005).

Methodology

The thesis would use primary and secondary data from IMF, World Bank and UNDAP databases to understand the volume and pattern of trade between WTO members. The paper would also use extensive literature review to discuss the current trends in member countries to form an opinion of the ground realities. A case study approach would be used where specific member countries would be analyzed.

Conclusion

The thesis would help policy makers to understand the practical difficulties and resistance to WTO and how the concept could be modified so that the governance and implementation does not hurt the poor (Ostry, 2000). The thesis would also help in developing proper governance mechanisms for governments and would make several recommendations (Huijgh, 2007).

References

Busch Marc L. 2008. Overlapping Institutions, Forum shopping and dispute settlement in International Trade. International Organization. Volume 61. Fall. pp: 735-761.

Chorev Nitsan. 2007. A fluid divide: Domestic and international factors in US trade policy formation. Review of International Political Economy. Volume 14. pp: 653–689.

Cummins J David, Venard Bertrand. 2008. Insurance Market Dynamics: Between Global development and local contingencies. Risk Management and Insurance Review. Volume 11. Issue 2. pp: 295-326.

Davis Christina L. 2000. Do WTO Rules Create a Level Playing Field? Lessons from the Experience of Peru and Vietnam. Department of Politics, Princeton University. USA.

Evans Robert J. 2006. How to Get the Best out of the WTO and How to Avoid the Pitfalls: New Publications. International Trade Forum. Volume 1. pp: 16-20.

Evenett Simon J. 2005. Can the WTO Rise to the Challenge of Economic Development? Aussenwirtschaft. Volume 60. Issue 3. pp: 257-277.

Finger Michael J, Virginia Arlington. 2007. Implementing a trade facilitation agreement in the WTO: What makes sense. Pacific Economic Review. Volume 12. Issue 3. pp: 335-355.

He Baogang, Murphy Hannah. 2007. Global social justice at the WTO? The role of NGOs in constructing global social contracts. International Affairs. Volume 83 Issue 4. pp: 707–727.

Huijgh Ellen. 2007. Diversity United? Towards a European cultural industries policy. Policy Studies. Volume 28. Issue 3. pp: 209-226.

Negi Archana. 2007. World Trade Organization and the EC Biotech Case: Procedural and Substantive Issues. Journal of International Studies. Volume 44. Issue 1.

Ostry Sylvia. 2000. WTO: Institutional Design for better governance. Kennedy School Harvard, USA.

Rose Andrew K. 2005. Does the WTO Make Trade More Stable? Open economies review. Volume 16. pp: 7–22.

Sally Razeen. 2008. After Doha: Protectionism Creep. Far Eastern Economic Review. Volume 171. Issue 7. pp: 31-36.

Shaker Peter Paul. 2008. America’s Bad Debt: How the unlawful Internet gambling enforcement act of 2006 will hurt the house. Fordham Journal of Corporate & Financial Law. pp: 1183-1205.

Steinberg Richard H. 1998. Institutional Implications of WTO accession for China. Institute on Global Conflict and Cooperation. IGCC Policy Papers.

Zimmermann Thomas A. 2005. The Future of the WTO – Addressing Institutional Challenges in the New Millennium. Aussenwirtschaft. Volume 60. Issue 2. pp: 241-245.