Thesis (MBA)--Stellenbosch University, 2004. / ENGLISH ABSTRACT: Developing economies are greatly influenced by changing factors of globalisation, trading pattems of industrialised countries and currency fluctuations. Trade reform is expected to play a critical role in creating competitive advantages among developing countries. However, liberalisation of developing countries has not always given the expected result. Too often, mullilateral organisations lecture developing countries on the merits of good governance, building dynamic institutions and greater openness to trade and foreign direct investments (FDI). The International Monetary Fund (IMF) estimates that if Sub-Saharan Africa's institutional capacity were raised to the level of developed countries, per capita GDP would be raised by 150 percent. The rich world's trade protectionism and inadequate FDI inflows are blocking poor nations' efforts to integrate within the global economy. Currently, protectionist barriers set up by developed countries disrupt global economic market adjustments. Extending liberalisation to trade in all commodities would almost double world gains and would benefit developing countries in particular. To sustain development through liberalisation, nations need to reform themselves domestically and all nations must be given reasonably free market access. / AFRIKAANSE OPSOMMING: Ontwikkelende ekonomiee word grootliks beinvloed deur die veranderende omstandighede met betrekking tot globalisasie. Handelshervorming sal na verwagting 'n kritieke rol speel om 'n kompeterende voordeel te skep vir ontwikkelende lande. Nogtans het die liberalisering van sommige van hierdie lande nie die verwagte resultaat gelewer nie. Dit gebeur gereeld dat multilaterale organisasies ontwikkelende lande voorskryf oor die meriete van goeie bestuur, die ophou van dinamiese instellings en 'n meer ontvanklike houding teenoor buitelandse handel en beleggings. Die Internasionale Monetere Fonds (IMF) skat dat as die institusionele kapasiteit van Suid van die Sahara Afrika tot op die vlak van ontwikkelde lande verhoog word, die bruto binnelandse produk (BBP) per capita met 150 persent sal styg. Maar die ryk wereld se handelsbeskerming en die onvoldoende toevloei van buitelandse direkte investering, blokkeer arm nasies se pogings om die wereldekonomie te betree. Tans ontwrig die beskermende maatreels in ontwikkelde lande die vermoe van die wereldwye ekonomiese mark om aan te pas. Deur liberalisering ten opsigte van alle handelsgoedere uit te brei, kan die wereld-winste bykans verdubbel word. Ontwikkelende lande sal veral hierby baat vind. Om ontwikkeling deur liberalisering te bevorder, moet nasies binnelands hervorm en alle nasies moet redelike vrye toegang tot die wereldmark gebied word.

This paper uses general equilibrium static and dynamic models to examine the economic and environmental effect of capital liberalization policy based on the general equilibrium static and dynamic models. The first topic develops a static general equilibrium model of a small open economy in the presence of unemployment with three sectors: a nontradeable sector, a tradeable sector, and an environmental sector. In the second section, I use a dynamic general equilibrium model of a small open economy in the presence of unemployment with three sectors: an importable sector, an exportable sector, and an environmental sector. In the last section I analyze the environmental effect of a developing country's capital liberalization policy when the consumer values the environment. The dynamic model, based on intertemporal optimization, focuses on the role of how land development is affected by foreign capital investment. The time-varying dynamic policies, such as planned permanent and planned gradual capital liberalization, are investigated to analyze the dynamic path of land and foreign capital stock in the short-run. The major findings of this paper are described as follows. In the long-run dynamic analysis, the production of the environmental good in a developing country is reduced when the developing country has a positive net income effect due to further capital liberalization, if there is an initial shortage of capital investment. The reduction of the environmental good might have a significant welfare impacts on the welfare of a country if the consumer places high value on the environment. This result indicates that countries with less environmental awareness are likely to improve the welfare of their countries whereas countries with strong environmental awareness are likely to reduce the welfare of their countries with capital liberalization. The other important result is that inclusion of the environment in the consumer's utility function slows down the pace of land development in the short-run dynamic model if the developing country lowers its capital investment tax rate. / Graduation date: 1996

The objective of this thesis is to demonstrate, through legal and regulatory analysis, how three non-trade issues - SPS measures, trade in GMOs and food security concerns - might result in new modem barriers to trade that might diminish the gains of freer markets. If developed countries use non-trade concerns to justify more generous domestic support in a non-decoupled way, may do as much harm to international trade as the traditional trade policies instruments did in the past. Such undesired behavior from the developed world is possible due to the inability of current WTO norms to control these new problems. These three special issues must be addressed in future negotiations in order to modify developing countries' perception that the payoffs of trade liberalization are not advantageous for them. The continuance of this perception during current negotiations might lead to the collapse of the current trading system.

No description available.

The aim of this research was to examine the trade policies designed by the World Trade Organization to minimise poverty levels in developing countries through trade liberalization.

The aim of this research was to examine the trade policies designed by the World Trade Organization to minimise poverty levels in developing countries through trade liberalization.

The focus of this thesis is the question whether or not the WTO discriminates unfairly against developing economies. In the absence of a test of guidelines for detennining unfairness or fairness of WTO provisions or Agreements has been drawn up using welfare economic and constitutional law principles as a foundation. Unfairness is therefore determined by asking whether the provisions of each Agreement are rational, proportional, efficient and whether they prevent the abuse of power amongst states. In addition, the economic effects of the provisions of the selected Agreements have been analysed to determine whether the relevant provisions are welfare enhancing and conclusive to promoting growth and development within developing economies. The Agreements chosed for analysis are the Agreements on Trade-related Investment Measures (TRIMS), Trade-related Intellectual Property (TRIPS), Agriculture and Services (GATS). The dispute settlement and negotiating process, labour standards and the impact of decreasing most-favoured nation rates on developing economy competitiveness is also discussed. Application of the test has shown that the WTO provisions do not reflect the interests of all members. Even though most member states are developing economies, the3 Agreements constantly cater foe developed country concerns and interests. Where provision is made for developing country interests, it is the LDC's who are favoured, with nonnal developing economies being bound by the same provisions as the developed economies. A fonnal, as opposed to a substantive, defmition has been adopted by the WTO, with a result that the process of equality is placed above the outcomes. While concessions have been made to development, members have not gone for enough. A main reason for the imbalance can be attributed to the negotiating process, which is based upon concessionary bargaining and trade-off. Those states with greater economic power are therefore at an advantage as they have the leverage needed to influence the outcomes of negotiations and hence the provisions of the various Agreements. Even with the LDC's, the WTO has been found to discriminate unfairly against developing economies because it does not adequately address developing country concerns. / KMBT_363 / Adobe Acrobat 9.54 Paper Capture Plug-in

This dissertation examines the effects of trade liberalization policies (represented by membership in the General Agreement on Tariffs and Trade/World Trade Organization on selected Least Developed Countries' (LDCs) human development (represented by the Human Development Index). In this dissertation, General Agreement on Tariffs and Trade (GATT) and World Trade Organization (WTO) policies are theorized to have two distinct types of effects: their direct effect and their indirect effect. Two questions are focused on: first, what is the effect (total, direct and indirect) of WTO policies on human development for selected LDCs? Second, what is the effect (total, direct and indirect) of WTO policies on human development for selected developing/developed countries (i.e. non-LDCs) holding economic development constant? Using the dependency theory of development as a theoretical basis, this dissertation examines the assumptions of modernization-theory-based policies as expressed in trade liberalization policies (i.e. the implementation of comparative advantage and now market fundamentalism) with world-system analysis techniques. To examine these questions, four panel regression models are constructed to measure the total, direct and indirect effects of WTO policies during the near-term (1998-2003) and during a longer historical term (1975-2000). The data for the analyses are taken from seven different sources of international data. The analyses seemingly demonstrate that there are quantifiable negative effects of GATT/WTO membership (trade liberalization policies) on human development in selected LDCs. The current implementation of trade liberalization policies does not benefit the well-being of all concerned as promoted by the WTO.