Trade liberalisation and LDC

Abstract

<p style="text-align: justify;"><em>Recent decades have witnessed rapid reciprocal trade liberalisation throughout the world. The concept of trade liberalisation for all strongly spelt out by the international trading system and its main administrative institution, the WTO. The aims are to foster economic globalization with a view to raising standard of living and new trading opportunities. However, these opportunities are far from being equally distributed and WTO faced strong criticism and demonstrations. The critics from the anti-trade liberalisation see WTO as an instrument for dominating the developing country and also sometimes consider it as a tool for economic oppression. It has also been argued that it is time to replace this unfair and oppressive system with a new and socially sustainable trading framework. While the optimists view the institution for upholding the economic globalization and removing trade barriers. More specifically it sets out the rules which are mainly concentrated in agricultural products and labour-intensive manufactures where developing countries have a proportionate share in international trade. It is also argued that participation in the world trading system under the WTO regime has been proved to be most successful in poverty reduction and, compared to the mechanism of foreign aid; it has far more potentials to benefit the poor. This collateral research paper demonstrates the linkage between trade liberalization and LDC&rsquo;s current position in international trade by applying the quantitative research methodology approach. This paper scrutinizes the current efforts and contributions of WTO with a view to determining the nexus between trade liberalization and the participation of LDC&rsquo;s. It also talks about the guiding principles to secure democratic control of resources and equitable participations in international trade. The first chapter is trying to give a general overview regarding the ideas regarding trade liberalization, developing countries share in international trade and underlying principle of WTO. The second chapter is to analysis the current agreements, rules, principles and decisions of the WTO which relevant to protect and to preserve the interest of developing countries and their trade liberalization. Trade liberalisation gives rise to the creation, production, distribution, and consumption of goods and services on a unique scale. That process is meant to increase economic activity for people, enterprises and countries through freer international trade, direct foreign investment, and capital market flows. Does the combination of all these factors would provide unambiguous growth for all is to scrutinize in the third chapter. It is believed that the developing countries are to take greater advantage of the benefits to be drawn from the multilateral trading system, there needs to be an expansion of their human resources and institutional infrastructure in the trade policy area. For this, the fourth chapter is going to illustrate the current position of the LDC&rsquo;s in global economy and whether this volume of participation is sufficient for them? One of the millennium challenges of the WTO is to elimination of world poverty under a marginal line where everyone has a proportionate share in economic growth. The fifth chapter is to focus on the impacts of the elimination of global trade barriers and their impacts on poverty alleviation. The sixth and concluding chapter points out the recommendations regarding WTO&rsquo;s reformation to become a more democratic and viable trade administrative body where everyone participations have been secured.</em></p>

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