International trade rules and practices have worked in favour of developed countries (DCs) but against less-developed countries (LDCs) in recent decades.” Critically evaluate this statement providing real-world examples & recent evidence to support your argument.
In recent decades International trade rules and practices have worked in favour of developed countries but against less developed countries, in recent years however this trend has declined and the future of trade rules and practice appears to be less discriminatory. Less developed countries (LDCs) have consistently been faced with challenging trade rules and practices. Historically LDCs had minimal influence on rules and practices that impacted upon them however LDCs have recently asserted themselves and formed strategic alliances with one-another. The main international institutions impacting upon LDCs are the World Trade Organisation (WTO), the International Monetary Fund (IMF) and the World Bank (WB), all 3 of whom have been accused of preferential treatment in favour of developed countries (DCs). DCs have also impacted upon LDCs, mainly in the areas of imposed barriers to trade such as tariffs and subsidies. The supply of aid to LDCs is discussed as are the barriers to implementation of policies and reform that LDCs face on a regular basis. Finally the trend towards bi-lateral agreements and movement towards a free market are discussed and advantages outlined.
Classifying countries into developed (DC), developing (DVP) and in some cases less developed countries is a contentious matter. Traditionally the 1st (DC), 2nd (DVP) and 3rd(LDC) world classification was widely accepted. The US, Canada, Western Europe and Japan constitute the 1st world countries, the former USR, China and Eastern communist countries the 2nd world and Africa, The Caribbean, Latin America and South
References: Geoffrey Maynard and Graham Bird, “International Monetary Issues and the Developing Countries: A survey,” World Development, Elsevier 3 (1975): 609-631, accessed September 24, 2012. Doi: 10.1016/0305-750X(75)90012-1. Sawyer W. Charles and Sprinkle Richard L., “International Economics – Third Edition”, Pearson Education, 2009. ISBN:9788120338272 Source: World Bank Annual Report 2007 http://go.worldbank.org/L7YP69QCQO (Bueno de Mesquita and Root, 2002).