• 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. Evaluation of Trading Blocs

    may find it near impossible to train themselves to work educated jobs. Nonetheless, there is usually a net increase of employment among the trading bloc nations, so its benefits outweigh the losses in terms of employment. Firms may be disadvantaged or advantaged.

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

    up past an extent the quantity demanded will decrease to a greater extent than it did earlier. This is further strengthened by the data I collected. The data clearly shows that the number of paintings sold to art collectors has not decreased as much as the decrease in the number of paintings to speculators.

  1. What is the impact of the Notional Interest Tax Deduction system on investments in ...

    It will also mean that there will be an increase in training and labour for the specific enterprises, leading to a more highly skilled labour force. Belgium remains a major foreign investment played and was ranked sixth largest recipient of FDI at $34.4 billion.

  2. The structure of the EU budget and its allocation

    Investment in infrastructure also retains an important role, especially in the least-developed regions. The European Social Fund (ESF) The ESF focuses on four key areas: increasing the adaptability of workers and enterprises, enhancing access to employment and participation in the labour market, reinforcing social inclusion by combating discrimination and facilitating

  1. Fair Trade

    world, plenty of its colonial structures in its center, a vivacious Chinatown with street vendors all across, and a lively Little India. The city has an interesting mix of elegant architecture decorating the whole city, merging antique colonial buildings with soaring skyscrapers.

  2. The future of Eli Lilly

    So in order to be present at the Indian market, Eli Lilly needed to partner up. Ranbaxy was the perfect fit. At a time were patent were no good in India, Ranbaxy was focused on research and development. This is very important for a pharmaceutical company, and with many Indian

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

    ________________ OLDER PEOPLE IN THE WORKPLACE Describe some myths that are related to older employees who are in the workplace. Myth 1 ________________ Myth: Older workers can?t learn as efficiently as younger workers Fact: According to a recent Harvard study, the ability to use an accumulated body of knowledge keeps rising throughout the lifetime of a person, rather than declining.

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

    Each nation?s economic approach was entirely biased towards the decisions of large commercial institutions and the government, but mostly the government. The monopolies, which many governments established within their colonies, were detrimental to the small businesses and the entrepreneur. Many Mercantilist theories were logical from an economic standpoint but were impossible without the implementation of free trade.

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