• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month
  1. 1
  2. 2
  3. 3
  4. 4
  5. 5
  6. 6
  7. 7
  8. 8
  9. 9
  10. 10
  11. 11
  12. 12
  13. 13

'Critically assess the role of the World Trade Organisation (WTO) as a means of promoting economic growth and development'

Extracts from this document...


Essay Title: 'Critically assess the role of the World Trade Organisation (WTO) as a means of promoting economic growth and development' Introduction The World Trade Organisation (WTO) facilitates trade between its 148 member states. It has become a central institution for economic governance and is the framework for trade liberalisation.1 The WTO (based in Geneva) replaces the General Agreement on Tariffs and Trade (GATT) in this regard. GATT was established in 1947 in the aftermath of World War II, a time when the global economy was understandably unstable. The original objectives of GATT were to reduce tariffs and to facilitate global trade between states. The underlying principle was based on 'Most Favoured Nation' (MFN), a concept which assigned one country to another, and then gave that country beneficial trading rights. GATT endeavoured to grant every country an MFN status so that no one country would hold an advantageous position over another. 2 One key difference between the two bodies is that unlike GATT, the WTO is a permanent body but is not a specific unit of the United Nations. It came into being in 1995 as a result of the final round of the GATT negotiations called the Uruguay Round. The WTO has certain duties such as 'monitoring national trading policies, handling trade disputes, enforcing the GATT agreements, which are designed to reduce tariffs and other barriers to international trade...and to eliminate discriminatory treatments in international commerce'.3 The theoretical advantage if the WTO is that there will be a permanent body to oversee the liberalisation of free trade ensuring smooth negotiations between its members. ...read more.


To clarify, there are no official WTO definition of what exactly a developing country is, instead members must determine their own status. This is turn can be challenged by other member states who disagree upon the state in question.9 There are of course certain advantages to being seen as a developing country, as the label brings certain rights. As already mentioned above (footnote 7) developing states have longer transition periods before implementing agreements and they also receive technical assistance as highlighted earlier. The WTO provide several training courses for developing nations. One of these is the technological training assistance course, which has been previously mentioned. They do not hold courses for private groups or individuals only states a whole in order to promote fairness in their quest for endorse growth and development. Some of the courses on offer include; regular three month trade policy courses, a three week introduction to the WTO and two week specialised courses, one week dispute settlement courses, one day introduction courses for the WTO, WTO eTraining as well as courses as the Joint Vienna Institute. All the courses are available in three languages; English, French and Spanish and are integral to the education of nations with aim of encouraging growth and prosperity through the new learning initiatives.10 The WTO provides a case study of the Guatemalan economy dated January 2002. ...read more.


The WTO have several facilities in place, which endeavour to promote development. The rounds system such as Uruguay, Cancun and current Doha round also make a concise effort to remedy any obstacles, which stop this from happening. The G8 summit, an annual event is also an attempt to 'take all necessary decisions' to ensure the success of the WTO liberalisation process. One of the biggest facing developing countries is lack of infrastructure, poor economies and inefficient state institutions, which hamper the WTO's effort in promoting growth. A further obstacle is the massive anti-globalisation effort which is taking place by extremist groups who oppose capitalisation and globalisation. Extremists from both side oppose the liberalisation of trade, both communist as well as some high profile far right groups such as Le Pen's French National Front and Haider's Austrian Freedom Party. At present, although conscious efforts are being made by the WTO to promote growth and development (which to some extent has been achieved) little considerable progress has been made for all the reasons outlined above. That is not say that successful progress cannot be made in the future. The WTO are on the right road with their training schemes, as education is key but it is going to require a more consolidated effort, with increased FDI, improved infrastructure and an overhaul of any state institutions which are hampering efforts to date. With these changes in place it is quite possible that the WTO will be successful in their quest to promote economic growth and development. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level UK, European & Global Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level UK, European & Global Economics essays

  1. Marked by a teacher

    How successful has the WTO been in achieving it’s objectives?

    5 star(s)

    Developing economies often have the fear of being exploited, partly due to their experience from colonial days. An often voiced criticism of the WTO says that there is not enough emphasis on helping the developing economies, but there is little evidence of that.

  2. Marked by a teacher

    ESSAY: Fair trade or free trade?

    5 star(s)

    In South Africa, HIV problems are common for the whole population. As a consequence of the TRIPS, US companies are allowed to maintain high prices (greeting of patents), while South Africa is not allowed to produce drugs in other way and is obliged to buy the drugs from the US.

  1. Marked by a teacher

    Analyse and Evaluate the significance of Fiscal Policy rules and Fiscal Policy targets and ...

    4 star(s)

    in AD, ?production, ?international competitiveness, ?employment, ? economic stability and ?economic growth L4. HOWEVER whether the Monetary policy is affective depends on many factors, for example it depends on how big the increase or decrease in interest rate is, a small change could make little or no difference for example if income interest is reduced by 0.00000000000000000000001%

  2. Explain the Heckscher- Ohlin model of international trade and assess the extent to which ...

    Ohlin factor price equalization theorem presents some of the key results of the model- applications of these theorems, which allow us to derive some other important implications of the model. (Refer to appendix one) The Hecksher- Ohlin model predicts the pattern of trade between countries based on the characteristics of the countries.

  1. Economic Growth HSC Notes

    The first five decades since Federation economic growth was very volatile. There were some years of strong economic growth followed by years of large declines in economic activity. This was a direct corollary of the volatile nature of agricultural production.

  2. What factors have led to the growth of anti-globalisation movements in recent years? Illustrate ...

    6 This shows the views of anti-globalists; they see globalisation as not only a means of progression but also as a destructive force. Members of society that support globalisation think of globalisation as progress that is vital for the world and society, they see it as a means of progression and development as well as survival.

  1. Critically discuss the role and importance of international commercial arbitration as an alternative dispute ...

    WWW.FINDLAW.COM No such right of appeal exists in arbitration. While the Uniform Arbitration Act permits a party to file a motion to vacate in state or federal court, the bases for such a motion are extremely limited and very seldom granted.

  2. Where does the World Trade Organisation fit in the overall scheme of international public ...

    Part One of the essay makes a stab at answering these questions by examining the structural features of the WTO, set against the extended background of the world trading system post-Uruguay Round. It tries to make sense of the modern governance of trade policy, "from below" at the national level,

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work