book
Development, trade, and the WTO : a handbook
Many Countries Have Been Less Than Successful In Integrating Into The world economy and benefiting from trade reform programs. The reasons are multifaceted and comprice a mix of domestic and international factors. Barriers to trade and investment remain high in many nations, with policy regimes implying significant anti-export bias. Numerous countries have been affected by civil strife and war. And in spite of the trade preferences granted by member countries of the OECD, industrial country tariff structures are still characterized by escalating tariffs, with high tariff peaks for agricultural products and for laborintensive products such as clothing. There is general agreement that many complementary policies and institutions are needed to support trade policy reforms in order to create an enabling environment for supply-side responses that generate employment and economic growth. As Dani Rodrik argues in Chapter 1 of this Handbook, if trade policy reform is to be successful, it must be embedded in and supported by an effective institutional setting, and it must be complemented by other reforms. A large and complex ""behind-the-border"" agenda has to be addressed if trade reform is to have its intended effect. Much depends on complementary policies that define the business environment-on policies regarding investment in human capital (education), infrastructure, and the quality of public and private sector governance. The Handbook focuses on a number of the elements of that agenda, as well as on more ""traditional"" trade policy issues such as the design of tariff regime. Although the challenges confronting developing countries primarilly concern domestic policies and institutions, trade policies, narrowly defined, are still important in today's international economic landscape. Barrirs to exports of some products in which developing countries have a comparative advantage remain high-tariffs on some agricultural products are 100 percent. Agricultural subsidies in OECD countries exceeded US$ 300 billion in 2000, contributing to global price instability and impeding the ability of developing countries to compete on export markets.
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