World Trade Organization-does it favour developed countries ? If Yes. With Examples?

Question

World Trade Organization-does it favour developed countries ? If Yes. With Examples?

Answer 1

The World Trade Organization is the official international body devoted to resolving trade disputes,  and suggesting changes for optimal world trade.

It apparently resolves disputes by recording the complaint then notifying the country complained about that a complaint has been filed.  Allowing the two to fight it out.

And also apparently optimizing trade be holding meetings where representatives of the member countries suggest changes, and the WTO takes notes and publishes the minutes.

Answer 2

No. Developed countries control the WTO.

Answer 3

Of course.  Contracts to develop usually go to first-world countries.  If a country new how to develop itself . . . they wouldn't need first world know how.

Answer 4

WTO is an organization to serve the interests of the superpowers.

Answer 5

Five answers so far and only one country named, Mali. We could go back and look at the original motivation for the Pan American Hwy from Argentina to Alaska.  In an effort to get some Middle School students to add some fresh ideas to that highway idea, we took an otherwise boring geography game on the 50 states of the US and added all the nations - armchair tourism fit our budget you see - along that route and finally added a tunnel (like the one btwn England and France) to connect to the Trans Siberian Railroad, etc etc. At least their geography skills were improved and we are not sure how many will become bankers, or diplomats. We removed all of the borders and gave no points for war or conflict; of course this was just a board game.

National Geographic keeps doing surveys about geographic literacy and maybe they could help by adding questions about the Pan American Hwy. The WTO and UN to make war a less attractive problem solving strategy.

Answer 6

Absolutely.  There are tons of examples.  Unlike the UN, the WTO has staggered voting dependant upon the economic size of members.  The U.S. holds a majority vote in all matters, unlike having one vote in the UN.  So, the system automatically favors states with robust economies.

WTO policies are also geared to favor developed states, probably because of the previous example.  In order for developing states to become members, they must adopt certain policies to allow them entrance into the organization.  Typically, these policies focus the state to choose a comparative advantage with a particular product.  The policies eventually breed developing states that are dependant upon a single product (typically agricultural) and these economies can tank easily with a mild fluxuation in the market.  Say for instance, if a developing African state had a comparative advantage to produce tea leaves and they do so, and its the only thing the concentrate on, what happens if supply increases too much and the price drops by say $1 a pound or so?  Their economy is crushed.  WTO policies should instead focus on sustainable development and building infrastructure.

The WTO easily favors developed countries.  It is the same way as World Bank and IMF policies as well.  These organizations exist, much like the UN, to serve the purposes of mediation, but do little shrink the gap between developed and developing countries.

Answer 7

Mali is one of the poorest countries in the world. It's primary crop is cotton. An estimated 13 million people in Mali depend on cotton for their livelihood. Mali's exports can't compete in world trade because cotton farmers in developed countries get subsidies from their governments so they can produce their cotton cheaper than the poor Mali farmers. The cotton subsidies were estimated to be $5 billion in 2003.

The topic of cotton subsidies has repeatedly come up before the WTO, always with weak results. One WTO decision in 2003 held that some aspects of subsidies were illegal in their impact on Brazilian cotton farmers. But the win was short lived. It did not affect most poor countries of the world.

The topic of cotton subsidies is one of the issues on the upcoming WTO Doha Round Talks.  It has been on the agenda for over 10 years, with no real progress. Unfortunately the Developed Countries don't want to give up their subsidy programs to protect their farmers. Meanwhile farmers in Mali go hungry and stay poor.