Policy Papers ⁽³⁶⁾

Read paper (World Economy, Vol. 25, No.10, November 2002, pp. 1415-32) In this paper, I offer an overview and qualitative assessment of the EC preferential trade arrangements with developing countries. My main conclusion is that beyond the obvious rent transfers accompanying such preferences, a definite positive impact of these arrangements on developing countries cannot be detected. To some degree, given the multi-layered European arrangements, it is not entirely clear what these preferences have meant: preferences to one set of developing countries may have come at the expense of another. The preferences may have also reduced pressures for trade liberalization within the preference-receiving countries thereby undermining the internal policy reform that could have promoted faster expansion of trade and possibly growth. Therefore, on balance, developing countries as a group will benefit more from a less discriminatory approach centered on the forthcoming Doha Round with the least developed countries assisted through direct aid.

Read paper How will the liberalization of trade in agriculture including food impact developing countries? To answer, we must distinguish between importers and exporters of the products as also between liberalization in the developed and developing countries. The paper makes these distinctions and outlines a conceptual framework within which to address the question. It also offers a simple model within which the impact of the liberalization on the poor can be analyzed. The paper argues that since the removal of domestic and export subsidies on agricultural goods will raise the prices these products, the large majority of the least developed countries, which are net agricultural importers, will lose from the change. This is in contrast to the claims by many senior World Bank officials and NGOs such as Oxfam that blame agricultural protectionism in the OECD countries as the principal barrier to growth in the least developed countries today.

Read paper (Economic and Political Weekly, January 26, 2002). With the Doha dust settled, it is a good time to reflect on what has been achieved, how it was achieved, what was India’s role, how this role was perceived and why? It is also a good time to draw lessons from the experience since we must get down to the business of developing positions on the negotiations to which we have committed ourselves along with other WTO members in Doha.

Read paper (EDRC Policy Brief No. 2, Asian Development Bank): This short paper discusses the achievements of the 1990s and the reforms waiting to be undertaken during 2000s.

Read paper (with Jagdish Bhagwati) (A shorter version published in the Financial Times) The recent castigation of rich-country protectionism by the heads of international agencies and in the media, while welcome, is little more than a reiteration of the obvious. But unaccompanied by a simultaneous focus on the protectionism of the poor countries, it has led to an encouragement of a number of fallacies that pose serious threat to the making of good trade policy in the poor countries. It also raises the important question: what can we do to effectively begin to dismantle this protectionism? We bring to light the fallacies and suggest a Jubilee 2010 movement to end protectionism in the rich countries.