World Trade Organization’s very mission is to serve the values of free and open trade. It “deals with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible”. But does it provide equal opportunities of growth and trade to all nations is a highly debatable and contestable issue. So let’s analyze the workings of WTO in light of the fact that there exists in world a high level of inequality where developed nations take advantage of less developed countries.
The rise of globalization has led to the increased participation of First and Third world countries in the global economic order as the world has become a more integrated place. But this increased participation does not mean that all the countries are given the equal chance to participate and represent themselves. The advanced and developed countries like US, England, France etc. exercise influence in the decision making process due to their dominant position in global affairs as compared to the poor developing countries. This unequal and unjust process where some countries shape the economic policies for the whole world is legitimized through the establishment of international organizations like IMF, WTO and World Bank. The purpose of this essay is to focus on one of these organizations namely WTO to highlight how the powerful and advanced states of the West enjoy economic advantages at the expense of the undeveloped, or in some cases underdeveloped countries of the world.
As the global economic order cannot work without the participation of all the countries of the world especially the Third World countries which are rich in agricultural and natural resources, it is important to ensure that these countries are made a part of WTO. The West is highly dependent on Middle Eastern countries for oil and other natural resources, and South Asian and African countries for raw material and agricultural products. Thus, these countries are not economically well developed due to lack of infrastructure, poor economic planning and bad governance. But they own abundant natural resources and fertile agricultural land. That is why they are exploited by the developed countries for their own economic interests. All the economic policies and regulatory rules regarding import and export, free trade between countries and foreign investment are made and implemented through the World Trade Organization (WTO).
This establishes a situation where it becomes mandatory for the Third World countries to become a part of WTO in order to carry out their international economic activities although they do not get the chance express their concerns or voice their opinions. As WTO is the international regulatory body which keeps a check on the global economic order, no country can afford to boycott or ignore its policies. For if any country dares to do so it will face the condemnation from international community which basically comprises of countries with veto power. Thus, WTO sets economic rules and regulations which every country has to follow irrespective of its economic, political and social conditions. And as a part of an integrated capitalist world order no country can successfully sustain itself by going against the major international organization like WTO.
The World Trade Organization holds a very important position and its decision regarding the inclusion of all countries as its members cannot be disregarded. Thus, due to the important status granted to it by the international community and the existing global economic order, no country can afford to choose a contrary path. This difference in power relations gives way to the exploitation of Third World countries in a legitimate manner. They are forced to join such organizations and act as passive audience while those who enjoy the fruits of development decide the fate of these poor and economically deprived countries.
WTO is a global platform which claims to provide equal opportunities of participation to all countries of the world and does the complete opposite of that. It gives a privileged status to the developed countries and act as a means of ensuring an economic order which is advantageous for the First World. No matter how hard the developing countries try, they cannot achieve the same status in WTO as that of countries like US, France, England and Japan etc. due to their lack of economic development. This shows that it does not matter what the pressing economic and trading issues between countries are. The only thing that matters is that the interests of some privileged countries are safeguarded at the expense of many others. This is done by revising and coming up with policies and regulations which justify these exploitative measures and present them as necessary for the successful and effective working of the world economic order. Whenever a regulatory measure regarding trade or economy is imposed which clearly violate the economic rights of poor countries, it is justified by presenting as a necessary step. Moreover, no matter how concerned the developed countries of the West show themselves to be about the poor nations ultimately what they care about is their own economic gains. And different events and crisis in the history has showed that it is the Third world countries that had to bear the consequences of economic crisis and WTO favors those countries which are more influential.
Furthermore, most of the US and European based companies establish their factories in Third World countries due to the availability of cheap labor and material. This allows them to exploit the economy of those poor countries by ignoring the international set standards for wage rates, working and environmental conditions. The WTO is well aware of the implications of allowing such activities in the developing countries which cannot effectively do something to protect their economies. Still, it performs the role of a silent spectator and only speaks up or condemns something when it is contrary to the interests if First World nations.
Another characteristic of WTO is that it is fundamentally undemocratic and does not give equal representation to all the member countries. The whole structure and working process is based on a visible hierarchy and the countries like US, England, France and Japan etc. occupy the top positions on this hierarchical spectrum. The WTO rules are written by and for corporations with inside access to the negotiations. For example, “the US Trade Representative gets heavy input for negotiations from 17 “Industry Sector Advisory Committees.” Citizen Input by consumer, environmental, human rights and labor organizations is consistently ignored” (Global Exchange Report). Hence, it serves the interests of transnational organizations which have their bases in the developed countries.
Furthermore, the undemocratic nature of WTO becomes obvious due to the presence of the member countries which hold veto power. The weightage and importance given to them makes it easier to ignore the demands and concerns of other less influential countries. So, although it claims to be democratic in nature and accepts every country as its members. Yet the way in which it treats them by giving preferential treatment to some while completely ignoring the voices of others is truly undemocratic. Apart from the participation issues there are also some serious transparency issues which question the authority and legitimacy of an international governing body like WTO. Thus, WTO needs a lot of work and effort in order to establish itself as an unbiased and fair international trade and monetary organization. The terms agreed upon in the Doha round needs to be amended further in order to create a fair trading system for all members. The developing countries must be given especial preference and support so that they can benefit in real terms from the membership of WTO.
