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Lawrence, Robert Z. 2007. "A True Development Round? A Review of Joseph E. Stiglitz and Andrew Charlton's
Fair Trade for All: How Trade Can Promote Development."
,
45(4): 1001-1010.
Show Article Details
DOI: 10.1257/jel.45.4.1001
Abstract:In Fair Trade for All: How Trade Can Promote Development, Stiglitz and Charlton
prescribe what a multilateral trade agreement--that promotes development and is fair
for all--would include. This review appraises their prescriptions and offers some
alternatives. Many of their ideas about what developed countries should do (opening
markets, especially of labor intensive goods and services and cutting farm subsidies)
are quite familiar and sensible. More controversially, however, they propose that all
WTO members (both developed and developing) completely open their markets to all
developing countries poorer and smaller than themselves. They also stress the importance
of preserving domestic policy space, dropping intellectual property rules from
the WTO and keeping restrictive rules off the agenda. Among its criticisms of the book,
the review points out that the liberalization proposal contradicts their own arguments
favoring individually tailored policies in developing countries and is likely to maximize
trade diversion. In addition, their prescriptions for more policy space neglects
the more desirable possibility of a WTO in which members accept differentiated
commitments.
Authors:
Lawrence, Robert Z.
JEL Classifications:
F13: Trade Policy; International Trade Organizations
K33: International Law
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