Wto law

NEGATIVE ASPECTS (economic, political and legal)

1.- ECONOMIC GLOBALIZATION

DEVELOPING COUNTRY

CULTURAL DIFFERENCE

PRIMERY COMMODITIES

Newland is a developing country, with lower middle-income and with a population of 30 million people. The question prime minister is whether we are able to compete with developed economies? Nowadays, developing countries as Newland, are force toopen their markets too fast and too far, while rich countries keep their markets closed to products from developing countries which compete with the products. For instance, we have the United States’ economy that applies subsides to its products.

Two main issues are at stake.

- Until now, globalization has no brought the promised economic benefits. There is a disparity between thepromise and the reality. Moreover, as Pascal Lamy said, there are some instances where globalization has reinforced the strong economies and weakened those that were already weak, as it is Newland’s economy. Moreover, if we try to open our economy now, probably we will do it in a wrong way because we are not prepared. We don’t have any safety nets, as developed economies have. In practice thereis no reciprocity and assistance of developed countries towards developing countries, as ours. That will contribute to increase poverty and moreover inequality.

- Economic globalization brought inequality within and outside states. For instance, the gap between rich and poor has increased in the last years. As Fred Bergsten mentions, globalization increase income and social disparitieswithin countries. Globalization leaves some people behind, especially the poor people or people like those that integrated the Newland Coalition from Better World (NCBW) (labour unions, environmental, consume and human rights organizations). Additionally, inequality in countries that have a huge gap between rich and poor generated violent reactions, as the one that happened last Sunday, and maylead the country to segregate itself. Small businesses will be one of the most endangered by this situation. Further more, globalization could also brings bad things such as terrorism.

-It is important to keep in mind that if we pretend to completely open our economy, it could expose our economy to a greater risk from external shocks. This shocks resulting from contagion associated withglobalization and interdependence and it will affect workers and employers. You can appreciate that from the recent World Economic crisis (2007), where developing countries that opened their economies the most, were the most affected by it.

-Economic globalization is responsible for world poverty and hunger, environmental disasters, unemployment and many other wrongs of today’s world. What weneed is room to engage in exchange rate and industrial policies that will diversity and restructure our economy, without that we could not be able to benefit from globalization. Also, if we want to open our economy, the reason must be to improve the lives of people, and in order to reach that through economic globalization in general and international trade in particular, they must be accompaniedby good governance, development assistance from developed countries and they have to be regulated at the international level. Yet, economic globalization has not been regulated equally in the international level, where always the developing countries such as Newland will suffer the consequences.

- Foreign Direct investment, as UNCTAD shows it remains very unequally distributed, moreoverthe companies that will invest in the country will hire employees that will be paid next to nothing, and will end it up working in dangerous conditions.

- Also, there will be some environmental issues that generate the overuse of our natural resources, more pollution and greater inequalities within the country.

INTERNATIONAL TRADE

- We need to protect our economy. According to...