The Protectionist Policies of Developed World Essay Example for Free

The Protectionist Policies of Developed World EssayGlobalization is the process of rapid global economic integration by both developed and undeveloped countries. The principle of globalization aims to facilitate lower transaction costs and barriers of the movement of capital and goods (Cable, 1999 in Manning and Baines, 2004), in which the give tongue to countries are involved. It can be said that globalization is the world market and the sum chain is the pipeline that channels the flow of supply. However, globalization may seduce smaller and weaker economic mathematical function players (such as ontogenesis countries) to be at a disadvantage whenever they trade with highly developed and more influential countries. From the argue of view of participating scurvy countries from Asia, Africa and the Middle East to the world market, the dialogs on economic protectionist policies have been formulated and executed through the GATT-WTO (Government Agreement on obligation and Tr ade of the World Trade Organizations). The protectionist policies of participating economies representing the developed countries are embodied in the said organization.The negotiations, as cited, has been framed primarily on (1) integration of inelegant trade rules of non-agricultural sectors, (2) incorporation of developing countries into the trade system, (3) management of trade impact of cash-out in farm support to countries under OECD (Organization for frugal Cooperation and Development), and (4) provision of assurance on health and safety for consumers (Josling, 2003). In short, the framers of the negotiations under the GATT-WTO sufficed as the protective principles or safety net to the rules on participating in the world market.However, it is common noesis within the agricultural and agro-industrial sector that among the impacts of the GATT-WTO to the ugly and developing economies is its incapability to meet the volume of supply to the exporting countries, to which the eff iciency of production is unable to sustain the prone supply contract of exports. In this predicament, the relatively poorer or developing countries would then cooperate with direct economic resource managements, exemplified by joint venture investments in the form of import and exportwherein foreign traders capital investment in manufacturing basically gains from cheap raw materials and labor. In effect, the poor and developing countries are set by the commodity pricing together with the ruling on supply regulation that has affected the domestic revenue generation.Another consideration on the impacts of the GATT-WTO to the poor and developing economies is its incapability to meet the volume of supply to the exporting countries, to which the efficiency of production is unable to sustain the given supply contract of exports. To cite an example, the coitus interruptus of cotton subsidy to several countries of Eastern and Western Africa has largely affected the production performance , in which cotton production in developing countries has significant role in poverty alleviation (Gillson, Balcombe, and Page, 2004). To cite, the GATT-WTO is taking part in agricultural trade reforms being represented by the rich and developed countries but wellbeing low-income farm households (Hertel, et.al., 2007).In this regard, it may be said that the protectionist policies of developed countries protect their interest at the global distribution and acquisition of economy. Therefore, despite the continuing negotiation on GATT-WTO, the restriction on agricultural trade has great impact to the poor and developing countries.On the other hand, the oversupplying of imported agricultural equipment and technologies that claim to get up production efficiency serves the ploy of powerful countries to impose the requirements on exports and imports. The imposition of the so-called efficient and qualitative agricultural products remains a barrier to the poor and developing countries to co mpete in the world market. Thus, the ultimate impact is the over-dependency of the poor and developing countries to export-import economic orientation and controlling of the rich countries to the overall economic supply chain that amass the domestic distribution of economy and, in effect, leaves the poor countries in extreme poverty.List of ReferencesGillson, I., Poulton, C., Balcombe, K. and Page, S. (2004). Understanding the impact of Cotton Subsidies on developing countries. Working Paper 29 Febraury 2008Josling, T. (2003) Key Issues in the World Trade Organization Negotiation on Agriculture. American Journal of Agricultural economics, 85(3), 663-67, American Agricultural Economics Association. 29 February 2008Leclair, M. (2002) Fighting the Tide Alternative Trade Organizations in the Era of Global Free Trade. World Development Vol. 30, No. 6, pp. 949958, 2002. Available from www.elsevier.com/locate/worlddev 29 February 2008Manning L. and Baines, R.N. (2004) Globalization a stu dy of the poultry-meat supply chain. Available from http//www.emeraldinsight.com/0007-070X.htm 29 February 2008Steinberg, F. (2008) The Impact of the Emerging Powers on the World Economy. Real Instituto Elcano (ARI) International Economy and Trade, Issue 1 January 2008. 29 February 2008Thomas W. Hertel, T., Keeney, R., Ivanic, M. and Winters, L.A. (2007) WTO agricultural reforms. Economic Policy, Printed in Great Britain 29 February 2008