Globalization is under attack.US isolationism is part of a worldwide phenomenon: anti-globalizers have risen to power in countries from Brazil and Hungary to the UK. And they led efforts to build walls real and virtual against trade and exchange. From the intellectual right, globalization is blamed for cultural decay. From the left it is attacked as a source of inequality and repression.
This note sets out three ways that the UK government can continue to improve access to UK markets for the poorest countries following Brexit.
External financial assistance is, and will remain, essential. But both donors and host countries need to do more to facilitate the transition from humanitarian relief to longer-term development assistance and trade measures could help.
EU agricultural support to member states is a barrier to development in Africa and elsewhere. Support levels vary by member, and remain high internationally, but neither the EU nor the OECD publish comparable figures on support levels in the 28 members. In this note, we publish the first estimates of agricultural support by EU members.
For nearly 50 years, the world’s “least developed countries” have received extra financial support and preferential trade treatment to help them grow and develop. In the first three decades after the United Nations (UN) created the LDC category in 1971, only one country—diamond-rich Botswana—outgrew that status.
There has been a resurgence in calls to reconsider the cross-party consensus in the UK on foreign aid and development. The main political parties are all committed to spending 0.7 percent of gross national income on aid, to using the internationally agreed definition of aid, and to maintaining a separate government department to administer the majority of this aid, led by a Cabinet Minister. In their recent report, Global Britain: A Twenty-first Century Vision, Bob Seely MP and James Rogers lay challenge to these long-established pillars of UK development policy. In this note, we consider some of the questions they raise and suggest alternative answers.
The economic impacts of Donald Trump’s trade dispute with China have so far been limited, but the countries of Latin America are nonetheless paying an early price. For a region where many economies are already constrained by weakened fiscal positions, the additional uncertainty caused by rising protectionism is especially unwelcome.
The benefits of global trade are numerous and well-documented, but trade channels can still be made more inclusive for women entrepreneurs and wage workers. Incorporating pre-ratification conditions into the trade agreement negotiation process to remove legal barriers against women’s equal participation in the economy (and therefore equal advantages from trade), as well as instituting follow-up enforcement mechanisms, can help to ensure trade benefits women and men more equally going forward.
With the Doha Round dead if not buried, the United States has no excuse for not acting on its rhetoric and providing improved market access for all of the world’s least developed countries.
In this note, CGD fellow Kimberly Ann Elliott discusses how flexible rules of origin can improve trade for the least developed countries.
The United States ranked 17th in the 2009 Commitment to Development Index with strengths in trade and security but weaknesses in aid and environment. This CGD Note describes how the United States could boost its score.
Stimulating Pakistani Exports and Job Creation: Special Zones Won’t Help Nearly as Much as Cutting Tariffs across the Board
Cutting tariffs across the board on Pakistani exports would expand economic opportunities and increase stability in Pakistan with vanishingly small effects on U.S. producers.
The loss of rice production in Myanmar is worsening the crisis in world rice markets, where prices have trebled this year. Meanwhile, Japan has 1.5 million tons of surplus rice, most of it imported from the U.S. Releasing this rice to global markets would prick a speculative bubble and bring rice prices down fast, while also encouraging China and Thailand to release their surplus stocks. But first Washington must lift its objections and Japan must decide to re-export rice that it imported from the U.S., Thailand, and Vietnam. Failure to act would mean that high-quality U.S. rice would be fed to Japanese pigs and chickens while millions of poor people suffer from hunger and malnutrition. Tom Slayton, a former editor of The Rice Trader, and Peter Timmer, CGD non-resident fellow and visiting professor at Stanford University, explain how prompt action could prevent the rice price crisis from becoming a hunger crisis.
Core labor standards--an end to forced and child labor, nondiscrimination, and respect for workers' right to organize--are important for sharing the benefits of globalization. But how to enforce them remains contentious. In this CGD Note, senior fellow Kimberly Elliott says that U.S. policy should focus on domestic issues, such as ensuring that U.S. workers have adequate safety nets, and international issues, such as assisting countries in improving compliance with labor standards. The U.S should leave the details of labor laws to national governments, with monitoring by the International Labor Organization.
Although many countries must share responsibility for the negotiating stalemate in the Doha Round of trade negotiations, the proximate cause of the talks' collapse last summer was the U.S. refusal to offer additional reductions in agricultural subsidies. In this CGD Note, senior fellow Kimberly Elliott discusses concessions the U.S. and other rich countries must make to save the Round, particularly reductions in agricultural subsidies and lowering barriers to imports of agricultural goods. Overcoming the impasse is crucial for developing countries: failure would deny them opportunities for job creation and growth that increased trade would provide, and would contribute to erosion of the multilateral, rules-based system that protects small, weak countries from discrimination by the powerful.
The ninth negotiating round, named the "Doha" Round for the city in Qatar where it was launched, has proven to be unique, because many developing countries are flexing their political muscle as never before. As a result, the Doha Round seems destined to fail unless rich countries cut the trade barriers that hurt developing countries most: those in agriculture.
Time to put to rest the stale debate over whether the World Bank should disburse grants or loans to the world’s poorest countries. It is critical that the Bank provide more of its funding as grants, but in a more rational manner than has been the case to date. A third Bank window should distribute grants – and grants only – to very poor countries, for example, with incomes below $500 per capita. Shifting to grants-only for the very poorest countries would ensure they never again find themselves with unpayable debt burdens, and would allow them to re-invest resources into their own economies rather than repay the Bank.