Expanding national policy space for development: Why the Multilateral Trading System must change
AbstractWith the increasing political and economic integration that accompanies globalisation, a growing number of international agreements now restrict the national ‘policy space’ of developed and developing countries alike. The paper demonstrates how developing countries’ national policy space is affected by agreements comprising the Multilateral Trading System (MTS) under the World Trade Organization (WTO). Focus is given to examining the narrowing range of policy options permissible under international trade and finance agreements, and the adverse effects this can have on countries in earlier stages of economic development. These effects are reviewed with the finding that the playing field resulting from international trade agreements, that have ostensibly equivalent rules for all contracting parties, may provide a much smaller policy space for developing than developed countries because of differences in initial conditions and national policy implementation capacities. It is argued that special and differential treatment (S&DT) for developing countries under the MTS needs to be enhanced and made more actionable and effective in order to provide developing countries with essential national policy space for development. Finally, general areas where improved S&DT is needed, and should be pursued by developing countries in the ongoing Doha Round of WTO negotiations, are summarised.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by EconWPA in its series Development and Comp Systems with number 0511005.
Length: 30 pages
Date of creation: 06 Nov 2005
Date of revision:
Note: Type of Document - pdf; pages: 30. The paper provides a conceptual overview of national 'policy space' as a sub-space of the universe of policy options available to a country in an ideal world without policy constraints. From such an examination, the paper illustrates how domestic ‘endogenous’ constraints and international ‘exogenous’ constraints may significantly restrict a country’s access to national policy space for development. Sources of endogenous and exogenous constraints are reviewed, and ways that international environmental, social and economic agreements can both reduce and extend national policy space are outlined.
Contact details of provider:
Web page: http://184.108.40.206
trade; development; developing countries; global economic governance; WTO;
Find related papers by JEL classification:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-06-03 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Robert E. Baldwin, 2003.
"Openness and Growth: What's the Empirical Relationship?,"
NBER Working Papers
9578, National Bureau of Economic Research, Inc.
- Robert E. Baldwin, 2004. "Openness and Growth: What’s the Empirical Relationship?," NBER Chapters, in: Challenges to Globalization: Analyzing the Economics, pages 499-526 National Bureau of Economic Research, Inc.
- Buffie,Edward F., 2001. "Trade Policy in Developing Countries," Cambridge Books, Cambridge University Press, number 9780521004268, November.
- Guido Tabellini, 2004.
"The Role of the State in Economic Development,"
122247000000000720, UCLA Department of Economics.
- Rodrik, Dani, 2003.
CEPR Discussion Papers
4100, C.E.P.R. Discussion Papers.
- Dreher, Axel, 2002.
"The development and implementation of IMF and World Bank conditionality,"
HWWA Discussion Papers
165, Hamburg Institute of International Economics (HWWA).
- Axel Dreher, 2002. "The Development and Implementation of IMF and World Bank Conditionality," International Finance 0207003, EconWPA.
- Rodrik, Dani, 2004.
"Industrial Policy for the Twenty-First Century,"
CEPR Discussion Papers
4767, C.E.P.R. Discussion Papers.
- Acemoglu, Daron & Robinson, James A, 2002.
"Economic Backwardness in Political Perspective,"
CEPR Discussion Papers
3261, C.E.P.R. Discussion Papers.
- repec:rus:hseeco:121595 is not listed on IDEAS
- Mehdi Abbas, 2007. "Mondialisation, Organisation mondiale du commerce et rapports Nord-Sud : entre différenciation et espace politique pour le développement," Post-Print halshs-00263950, HAL.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).
If references are entirely missing, you can add them using this form.