The Role of World Trade Organization and Its Impact on Globalization
THE ROLE OF WTO AND ITS IMPACT ON GLOBALIZATION,
GLOBAL POVERTY AND INEQUALITY
INTRODUCTION
Over the last few decades, inventions in the field of science and technology enlarging the domain of the global economy. In other terms, rapid globalization driven by advancement in technology and liberalization, shifting the weight from national economies to a global economy, in which rapid and without barrier financial capital flows and production is internationalized between countries, since the 1990, globalization has become a reality and a key economic factor.
The trade barriers has positive link with the poverty if trade barriers are high it will also raise the poverty level. Restriction in the shape of tariffs a developing country farmer must pay reducing the possibility of exporting to the developed countries because this trade will not remain viable where he will compete with the developed country farmer who are enjoying heavy government subsidy but he have to pay almost 100% import duty for many agriculture products. Unable to export, on a small scale mean less income for attaining better health facilities and education for their children and on a large scale impossible for developing countries to change their status form poor country to developed country because of its massive trade deficits. Whereas developed countries have better resources and it is almost impossible for developing countries to compete with them in a technological advanced products. This is one of the major reason they are the biggest beneficiary of this imbalance trade system which is base on inequality and leads towards poverty.
THE ROLE OF WTO AND ACHIEVEMENTS
The World Bank suggests broad trade liberalization would lift 300 million people out of poverty by 2015 (World Bank/Global Economic Prospects and the Developing Countries 2002).
So what should the role of World Trade Organization and its impact on global poverty and inequality? The WTO is become a leading player for
GLOBAL POVERTY AND INEQUALITY
INTRODUCTION
Over the last few decades, inventions in the field of science and technology enlarging the domain of the global economy. In other terms, rapid globalization driven by advancement in technology and liberalization, shifting the weight from national economies to a global economy, in which rapid and without barrier financial capital flows and production is internationalized between countries, since the 1990, globalization has become a reality and a key economic factor.
The trade barriers has positive link with the poverty if trade barriers are high it will also raise the poverty level. Restriction in the shape of tariffs a developing country farmer must pay reducing the possibility of exporting to the developed countries because this trade will not remain viable where he will compete with the developed country farmer who are enjoying heavy government subsidy but he have to pay almost 100% import duty for many agriculture products. Unable to export, on a small scale mean less income for attaining better health facilities and education for their children and on a large scale impossible for developing countries to change their status form poor country to developed country because of its massive trade deficits. Whereas developed countries have better resources and it is almost impossible for developing countries to compete with them in a technological advanced products. This is one of the major reason they are the biggest beneficiary of this imbalance trade system which is base on inequality and leads towards poverty.
THE ROLE OF WTO AND ACHIEVEMENTS
The World Bank suggests broad trade liberalization would lift 300 million people out of poverty by 2015 (World Bank/Global Economic Prospects and the Developing Countries 2002).
So what should the role of World Trade Organization and its impact on global poverty and inequality? The WTO is become a leading player for
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