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ABSTRACT : The history of recent trade meetings shows that something is wrong with the global trading system. Behind the discontent are some facts and theories. The facts: Current economic arrangements disadvantage the poor. The theories: Trade liberalization leads to economic growth, benefiting all. This is the prevalent mantra. Political leaders who oppose it are cast as behind the times, trying to roll back history. The fact of the matter is that the economics of trade liberalization are far more complicated than political leaders have portrayed them. There are some circumstances in which trade liberalization brings enormous benefits -- when there are good risk markets, when there is full employment, when an economy is mature. But none of these conditions are satisfied in developing countries. Today, liberalization discriminates against developing countries. Transparency is essential so there can be more open debate about the merits of various proposals and a chance to put a check on the abuses special interests.





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Globalization; Trade liberalization; Developing countries--LDCs; Trade agreements; Economic growth; Fair trade ----------

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