Contrasting Perspectives and Interests of Developed and Developing Countries with Respect to Global Trade Liberalisation

Introduction
The global free trade is a relatively new concept which supports a system of trading policies which permits free trading across national borders. Trade liberalisation is practised in various countries as a means of boosting development and growth. Traditionally, each country will have policies set which ban or restrict trading of certain goods or services across national borders. This could hamper the economy of not only that specific country but also of various other countries. The free trade policies allow prices to be set without any restrictions and based on the demand and supply relations.

Global trade liberalisation has been the centre of economic debates for some time now. When many countries and international bodies are the proponents of the cross border trade liberalisation, others, including some developing countries, were sceptical either to the idea of opening its borders for free trade or to the implementation of the liberalisation policies in its current form. There have been numerous studies and researches (Bouet, 2008; Anjaria et. al., 1998; IMF staff, 2001a; IMF staff, 2001b; Held et. al., 1999) which shows the benefits of free trade including development of economy and poverty alleviation. There are other writers (Das, 2007; Das, 2004; Greenaway et. al., 2001; Byers, 2003) who are not so confident about the positive outcomes or at least are cautious of the effects. The studies also show the various views of developed and developing economies.

Anjaria et. al. (1998) supports the idea of free trade. According to him, “a liberal or free trade system is necessary to allow the effects of shifts in comparative advantage to be felt across national borders over time.” International bodies like IMF are huge proponents of the liberalisation. They published various studies which list out the benefits of liberalisation. “The economic integration as a result of the liberalisation has raised living standards in many parts of the world. This... [continues]

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