Facing the failure of trade liberalisation measures, developing countries shouldbe free to raise tariffs if necessary, and should have access to more information on the benefits and drawbacks of different trade policy options.
Rozy Afrial J. ------------------------------------------------------------------------------------------------------------------------------------- THE ECONOMICS OF FAILURE:THE REAL COST OF 'FREE' TRADE FOR POOR COUNTRIES Christian Aid, 2005 This briefing paper argues that in real terms, the aid received by Africa has simply offset the losess sustained as a result of the trade conditions attached to aid packages.It argues that these losses dwarf the US$40 billion worth of debt relief agreed at the recent meeting of G7 finance ministers. The paper uses data from econometric study to demonstrate the negative effects of trade liberalisation, and to show what might have happened, had trade not been liberalised. Based on this evidence, it argues that African countries would be richer today if they had not been forced to open up their economies. Key points are: 1.. imports tend to rise faster than exports following trade liberalisation 2.. this results in a loss in income for producers, only temporarily offset by decreased prices 3.. without liberalisation, growth could have been higher and poverty reduction faster 4.. In the year 2000 alone, sub-Saharan Africa lost nearly US$45 dollars per person thanks to trade liberalisation, while aid per person was less than half the loss from liberalisation trade liberalisation is not driving the development of a more dynamic, diversified or pro-poor pattern of development The paper concludes that G8 countries must: * use their leverage in the IMF and World Bank to stop the condition of trade liberalisation that accompanies aid * support legislation to allow developing countries to opt out of policies that do not benefit them. Full text is available online at: http://www.eldis.org/cf/rdr/rdr.cfm?doc=DOC18843 [Non-text portions of this message have been removed] Bantu Aceh! Klik: http://www.pusatkrisisaceh.or.id Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/ekonomi-nasional/ <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
