Implications Of Trade Liberalization In The Global Economy In Malawi

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About two thirds of the WTO’s 162 members are developing countries. They play a progressively essential and active role in the WTO because of their numbers, because they are becoming more important in the global economy, and because they increasingly consider trade as a vital tool in their development attempt. Developing countries have different views and concerns towards WTO negotiations, and one of those is the skepticism on the fairness in WTO’s regulations. Global economic integration without taking into consideration the different levels of developing and the specific economic situation of the country would be an ineffective and meaningless effort at such integration (Kaldor, 1981)
Can developing countries benefit from trade liberalization
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Nevertheless, for Malawi to take advantages from the WTO process, Mr. Lungu, a senior ministry official, claimed that “if developed countries were to grant Malawi free access to their market, supply-side constraints would hinder the country from enjoying significant gains from the full access”. Malawi needed to resolve the principle issues of low productivity and profitability of small farmers in the agricultural sector to compete with giant agricultural manufacturers, let say the American. Productivity has been seriously affected by low-level development, poor varietal selection, deteriorating soil fertility and modest agricultural practices. Farmers are handicapped by the shortage of information and weak infrastructure, leading to high input costs and low output …show more content…
China is a stark example for the successful open-door policy to become one of the largest trading countries all over the world with substantial annual GDP growth rate. The establishment of WTO as a negotiating forum, a rule setter and a dispute settler promote international free trade based on comparative advantage theory of David Ricardo (1817). Until now, WTO has 162 members, in which two thirds are developing countries. However, WTO negotiations face the skepticism of those countries whose capability to adapt the integration is not enough. Free trade is destroying their domestic farmers, manufacturers and damaging their independent growth. Therefore, the specific economic situation of the developing countries should be taken into consideration in later negotiations of WTO and the active intervention of those governments also plays an important role in adopting suitable trade and economic policies to catch up with developed countries in the decades of

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