Self-determination (the race to the bottom)

Ian Murray seamus2001 at attbi.com
Wed Jan 8 09:39:16 PST 2003


----- Original Message ----- From: "Ulhas Joglekar" <uvj at vsnl.com>


> The Left does find it hard to acknowledge that anything significant
can
> happen in the "The Third World". Cuba, naturally, is an exception !
>
> Ulhas
>
=======================

Apropos, here's an analysis of Marton Khor's recent tour of Pakistan, touching on present and future WTO regimes:

Message: 2

Date: Sun, 05 Jan 2003 14:57:43 +0500

From: Tahir Hasnain <tahir at thenetwork.org.pk> Subject: TH Trade Column # 02 - Martin Khor visited Pakistan

As stated in my last column, TheNetwork along with Actionaid and SDPI facilitates establishment of WTO WatchGroup (WWG) in Pakistan, an initiative of CSOs in partnership with various agencies and individuals who are concerned about WTO. While WWG will formally be launched early this year, WWG, in its efforts to stimulate debate on threats and opportunities in the WTO regime, has initiated distinguished lecture series all over Pakistan by inviting eminent international scholars.

WWG, to start with, invited Martin Khor (Director - Third World Network) from December 28 - 31, 2002 to deliver lectures in Islamabad, Faisalabad and Lahore on WTO and its Impact on Developing Countries. Martin's visit, eventually, helped to strengthen and develop an open dialogue on WTO issues among civil society, CSOs, and private and the government sector. Below please find a short summary of Martin's visit including his thoughts re WTO and developing countries. Those who don't know much about Martin, please see attached his short biography for your perusal.

In Islamabad and Lahore, Martin gave lectures on "WTO Regime: Threats and Opportunities". Hundreds of CSO activists, government officials, academicians, members of Chambers of Commerce & Industry, press reporters, columnists, individuals concerned about WTO participated. Martin suggested that the developing countries should launch a joint struggle against the hidden manipulation of the WTO, as it is an agreement against the poor economies due to which the lives of consumers is being affected. In the present form, Martin termed the WTO an unfair agreement which was hurting rights of populace of the developing countries.

He clarified at the start that his organization was not against the globalization or liberalization but the kind of globalization and liberalization taking place had many weaknesses detrimental to the economies of the developing countries thus bringing bad name to the WTO itself. What is currently happening in the WTO is quite apposite to what it should be. This means instead of providing more leverage to already developed world, the developed countries should rapidly liberalize their markets so that the rest can come and compete while the developing countries should be allowed to liberalize their market as per their development level and hence, in various flexible stages. The developing nations should also be given the right to choose the WTO agreements which they like and reject the ones they don't prefer.

He emphasized the need for exploring more and more information about the WTO implications over the developing countries saying that the WTO should be a forum where these countries could exercise their right. He also asked the civil societies in the third world to contribute so that their governments could be strong to withstand the manipulative pressures by the developed countries.

Martin believes that if trade is not an end in itself but a means to balanced, equitable and sustainable development, the current WTO trading rules must be reoriented towards the satisfaction of the needs of the world's people. The WTO, for most of the developing countries so far, was considered a technical economic issue but it is now going to affect every thing in relations to jobs, food, policies and strategic advantages. Martin added that until now the developing countries were never capable to participate with full potential in the WTO process and, eventually, the world has witnessed that WTO rules have been twisted in a way that those who maneuvered the rules took benefit from it and developed countries by virtue of their better bargaining position, were able to do so.

He said huge multinational corporations intended to enter in the developing countries to capture their market and once they were in, these agreements would prohibit governments of the developing countries to regulate them meaning that these companies could move their cash in and out free without any check. "The agreement would also prohibit the local companies to get any advantage over these multinationals." Secondly, the agreement would also ensure that the multinationals also enjoy a slice over government expenditures through equal chance in government procurements, which were usually more than the imports, he said.

He warned participants about recent proposals for inclusion of new issues into the WTO. These are to completely disable the developing countries versus foreign companies and will prove to be last nail in the coffin of economies of developing countries. These new Issues are INVESTMENT, COMPETITION, GOVERNMENT PROCUREMENT, TRADE FACILITATION, etc. These are non-trade issues and don't actually belong to WTO. He advised the governments to be alert as far as these new issues are concerned for the reason that in WTO one can struggle to stop things to enter but once these become part of the agreement, it is almost not possible to change the rules.

The former finance minister Mr. Sartaj Aziz, while concluding the seminar in Islamabad, stated the rich countries were not treating developing countries fairly. As he was in the government since last fifteen years, one way or the other, he confessed the fact that due to internal political instability and exotic clout, Pakistan government was never able to withstand IMF/World Bank/now Asian Development Bank directives + pressures and as a result, followed ostracized policies including the WTO agreements.

The Faisalabad lecture was held in the Agriculture University Auditorium where Martin focused on "Trade Liberalization in Agriculture". A number of agricultural academicians, agri. researchers, agri. students, farmer groups, CSOs and members of trade and industry attended the lecture. Martin termed WTO Agreement on Agriculture as a criminal agreement which is very unfair to farmers of developing countries. A majority populace traditionally engaged in agriculture in the developing countries is now deprived of government-domestic-support and facing serious consequences. Some of them have already left the job and others are now about to leave because agriculture has become disadvantageous business to survive. In contrast, farmers of developed are enjoying ever more government-support in the form of so called 'non-distorting farm subsidies or direct payments' and they are able to sell products at lowest price and defeat our farmers in the market who don't enjoy such subsidies. The inclusion of new issues will close down all the remaining windows for our farmers, local industry and traders. Martin stressed the need for a coordinated work among agri. academicians/researchers, NGOs and policy makers. NGOs can in fact bridge the gap between policy makers and researchers + other stakeholders.

Martin also met Secretary Agriculture plus senior officials of Ministry of Agriculture; Additional Secretary, Ministry of Commerce plus officials of WTO Wing who, as a result, agreed to work with NGOs and, particularly, WWG to face WTO challenges.

This is to inform you that due to the sensitization geared up by Martin's visit, Ministry of Agriculture has called us to help re ongoing Negotiations on Agriculture and we have promised to fully cooperate with the government in this regard. By the next column I'll be able to let you know further progress on all these issues.

Thanks for reading.

Tahir Hasnain Project Coordinator (International Trade) TheNetwork for Consumer Protection Islamabad, Pakistan Visit: http://www.thenetwork.org.pk/itp.htm



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