THE DOHA moot will be nearing to its end when these lines go in print. Although, the moot must be in some turmoil. The travel arrangements could not have been finalized in the aftermath of what is happening in the neighbouring country.
The fact remains that the developed and the developing countries have to come to terms with what is going to come up in the future so far as the globalization factors have to be discussed.
The developing countries are in a bind. The kind of development they seek is the kind that is all glare and is of the western kind. That has been the promise for a long time. It brings with it some stress and some kinds of strains. It is the overall actor that is going to be very significant. Is the storming of the world system to move into one kind of development? The matter is different and has to be seen in perspective. One of the affects of the September 11 will be to try and find a more equitable solution to the issues at hand.
There is no doubt in any one’s mind that the USA has a whip in hand on the trade matters. The culture of the USA encourages a positive attitude and if they seek some benefits for their country, that is fine. I would try and seek the same for my country too. The free market that is so frequently mentioned as the gospel of the IMF and the World Bank is nothing of the sort. There are negotiated points and issues. The trouble with us is that we do not have any clarity on theory and are totally misconceived on the practical and experiential side.The free market operates not under unfettered freedom but responsible freedom. There is no way that the free market is an irresponsible market. Governments do not interfere with the free markets, they get involved with them. Subsidies are possible only if they can afford it and if it does not distort international trade.
What is distortion in international trade? That is that the country giving the subsidy should not be able to have an undue advantage. The fairness of a country is dependent on its education and training. Training is not possible in educational systems but in sport. The USA’s whip gives it a tolerance threshold that is superior to other countries. They do their homework and do not go about opinionating. The business of and trade of America is to value all its products well. They have been running around whipping support for what they see as a golden opportunity for increasing world trade. The countries that perform well in the trade regime will succeed and the others will fail. So what are we up to? Want to know? We have a couple of grade 18’s looking at the trade regime and seeking to overthrow the work that will be carried out by others in the world of academics. The level of thinking is almost mind-boggling. They had a seminar lately. That was that was. That sums it. They had a presentation by a consultant from UK from a grant paid by the DFID. Great. The conflict of interest was not understood. The entire ammunition that was to be used for negotiations was provided to the consultants. Great.
Pakistan has to put its act together. It can no longer bank on preferential treatment. It can have no goodies from elsewhere or from anywhere. With the debt burden only being put a few years this way or that, money has to be found for exports that Pakistan will need. Does Pakistan need exports? Yes and No. The question is at what cost? We have been bad managers of money and resources. We have squandered away chances that should have been utilized. No one to blame but our selves. Calls for some introspection. Where have our resources gone? To the productive side? I am sure they did? Can we then have a definition of productivity and productive sectors? Can we then see whether they have been operating in the country’s welfare or has it been a continuous stream of exploitation and siphoning of? Do not believe me. Find out yourself.
Will our surpluses in agriculture find a market? Will our basmati sell? Will our cotton find a place in the world market? Will we fail and go back to the begging bowl. Are we competent enough to have a grip on the matters? Do we work on our problems and see how we will position ourselves. We have a competent team I am told working in the A Block from the money provided by the Asian development Bank. Why? What? I cannot believe what I have seen and heard. Will we ever learn to be proud of our heritage and work independently? We can squander billions and we have but we cannot get a team to go and have the liability for persuasion of policy makers in other parts of the world. Can we whip up some support? I do not think that we are capable of doing what we have thought to be our best strategy, the fall back position? The problem is that there is very little intent and focus. Let us admit and see if we cannot find a way out.
What then are the core issues and what will be the stand of the country. To the majority, (the silent majority,fashionable these days] there is no need for foreign exchange. They rarely see any dollars. Dollars are alien to the rural population. They serve only the needs of you and me. A broad and balanced thought process will come your way and then if you agree without understanding the ramifications for Pakistan some one will later in the day will accuse the people concerned. So it is better to consider what is to be done now rather than when there will be lot of water under the bridge. Then the question is, and as the USA puts it so succinctly, the negotiations are not only economic but also one has to make political judgments.
These political judgments can only be made if there is a mandate given to the people who will be there. The mandate is lacking. It is not as straightforward as one would like to think. And on that I will agree with the USA trade person.
The mandated will have to work a mandate for a universe that is more equitable and that provides the basis for trade and development. Admittedly the developing countries that have neglected development in the past will pay for it. That is the wages of sin. The haphazard manner of performance will have to be paid for. And with interest if one does not wake up now.
Where the USA track record is not up to the mark is when it comes to developing agriculture in a sustainable way. It has taken a stand against Kyoto and finds that the reasoning is faulty. That and the two other areas where, although it has nothing to do with the WTO, it will have to play a different game. One is racism and the other is small arms banning. In Africa and other parts of the world small arms are much more lethal than weapons of mass destruction. The view may well be that it is not relevant to trade. But it is and in huge way. Trust and credibility is all encompassing and the USA will have to place its cards on the table. It is not that have this for globalization and not something else.
Probably the most loaded of the argument is with respect to agriculture. It seeks to protect its own agriculture through the use of good science. That is not possible, for then any country will be a judge in his own cause. The matter is far too serious to be brushed under the carpet. The levels of protection for health, for safety and the environment is easier said but virtually impossible to implement fairly. So the effort should be at not having any kind of control. If the product is not up to the mark the discerning consumer will reject it automatically. Have faith in the market.
At the moment it is the sharp practices of the developed world that is the basis for spread of disease[s] in the developing world. Let the market forces take their course. But we have our own sages who have been advocating the elimination of all incentives to the local farmers and here is USA coming to defend its farmers. In fact the USA is the most protective of its farmers. The global figures for trade need to be projected if only to get the world to witness the encouraging trends. Unfortunately trends have to be over a longer period. I know that the trade for commodities was 43 per cent of the world trade. This has reduced.
Preparatory work will have to be done on competition; investment opportunities will have to be developed. There is much to do.
