• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Inequalities associated with the global trading system + Letter to Mr David Walker.

Extracts from this document...

Introduction

Brian Lockyer Practical 5 10th September 2009 Dear Mr David Walker As a third world businessman I constantly bear witness to the inequalities and injustices associated with the global trade system. These inequalities and injustices could potentially be detrimental to the future stability and security of many African economies which primarily rely on the export of agricultural produce for survival (Clapp, 2006:563). The concept of agricultural protectionism is one that is a highly divisive issue that will render many Africans countries becoming susceptible to economic stagnation and ultimately economic declination as their ability to compete in the Global markets is significantly reduced. Agricultural protectionism therefore places an unfair burden on African countries and completely undermines the concept of free and liberalized trade (Clapp, 2006:564). ...read more.

Middle

people living in poverty and therefore the protectionist policies of OECD countries and other rich countries poses severe implications for the future sustainability of many African economies (Stiglitz, 2006). Throughout Africa there have been many industries that have been severely hit by competition from highly subsidized agricultural produce from the European Union and The USA. One prime example can be seen in Namibia where a 600% increase in EU beef exports to South Africa has severely hampered the ability of Namibian cattle farmers to compete in the market as the surplus of EU beef floods the market thus lowering prices (Hooper-Box, 2003). Other industries that have been affected include the canned food sector which has experienced a period of stagnated growth over the past ten years whereas the canned food industry in Europe has, in the same period, doubled and continues to experience growth (Hooper-Box, 2003). ...read more.

Conclusion

The inequalities present in the global trading system have adverse affects on the developing world as the 'dumping' of produce on global markets result in price deficits which hinders economic growth and therefore sparks reductions in employment and social development rates (Stiglitz, 2006). The gross imbalance in the global trading system according to Stiglitz, is primarily due to economic globalisation out pacing political globalisation. Agricultural protectionism may not be the cause of poverty and underdevelopment in Africa; however the liberalization and implementation of free trade routes without barriers would sufficiently aid and improve the perilous situation in Africa. Africa is in dire need of investors and the opening of global trade markets would entice investment and therefore encourage the much needed economic growth. The strict implementation of regulations is a necessity in policing the detrimental effects that globalisation is having on the developing world. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate 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 International Baccalaureate Economics essays

  1. The structure of the EU budget and its allocation

    payment appropriations and their actual implementation concerns principally: � European Regional Development Fund (ERDF) - Convergence: Convergence programmes for the new period are progressing much better than was predicted, and therefore it was possible to make payments of EUR 1 109 million more than entered in the budget.

  2. Economics Extended Essay - To what extent has the market for paintings in South ...

    Rs 470000/ $1044.44 2274 1258 October 08-June 2009 Rs 390000/ $8666.67 1450 443 From the tables we can see that there has been around a 65% drop in the number of paintings sold. The main reason is the reduced number of speculators in the market.

  1. Fair Trade

    * Georgetown; there are several attractions to wonder at in this city such as beautiful old Chinese houses, temple ceremonies, vegetable markets, trishaws, mahjong games and other aspects of Asian life. Evaluation of Malaysian Tourism Industry The tourism industry in Malaysia has experienced a rapid growth and gained an importance in the Malaysian economy.

  2. The future of Eli Lilly

    2 As stated by the general manager, Eli Lilly used Ranbaxy and the newly established joint venture to get into the Indian market. Disadvantages with a Joint Venture As well as there are advantages with a joint venture, there are also disadvantages with a joint venture.

  1. Accounting Information System

    Firstly, they constitute the main qualitative characteristics of accounting information; both of them have the quality information. Secondly, both the relevance and the reliability are set from the perspective of information users. (Zhao, 2002) Relevance tells the users which information is useful to the decision-making; reliability tells the users whether they can reliable on this information to make decisions.

  2. Effects of Liberalization

    When the tariffs and non-tariff barriers are removed, resources are produced with no restrictions, making it easier for countries to specialize. The countries now also don't have to worry about costs, as they can trade freely. Therefore as more specialization occurs, it is easier for comparative advantage takes place.

  1. What has happened to Canada's demographic over the past 50 years? What are ...

    The Various Types of Age Discrimination/Ageism ________________ Type Definition Personal Ageism Occurs when a single person holds prejudicial or discriminatory views toward older persons in the workplace. Institutional Ageism Relates to rules, policies, and practices, such as mandatory retirement, that can apply to a certain age group.

  2. 15 Historical Economic Questions on Mercatilism and the Development of European Countries.

    The cataclysm of the Industrial Revolution in the United Kingdom can likewise, be accredited to the transatlantic slave trade in conjunction with the colonization of the Americas. The United Kingdom?s domination of the seas via a strong military force gave it control of ocean transportation and trade.

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