Trade policy of developing countries

In the first decades after the war, the Governments of many developing countries came to the conclusion that opening up the economy was not beneficial for poor countries, and emphasized policies aimed at reducing dependence on the external market. Uncontrolled population growth, lack of natural, financial, and human resources, declining agricultural productivity, and the military conflicts they have been trained in are among the factors that keep most countries in the world at a lower level of development. Although the situation has improved in recent years, the discrepancy between the "rich" (north) and the "poor" (south) of the world is still significant.

With the exception of oil prices (determined by OPEC-controlled supply changes) and gold (artificially controlled), prices for other commodities tended to decline in the second half of the 20th century, leading to deteriorating exchange conditions and difficulties. in obtaining the necessary currency to pay for the import. In these circumstances, many developing countries have decided that supporting the industrial sector is a more effective policy than focusing solely on agricultural production; thus, it turned out that it would be more effective to replace imports with local products under the guise of high customs duties or non-tariff trade barriers.

The theoretical basis of this policy of industrialization by import substitution is the argument of emerging industries, according to which developing countries have a potential/theoretical comparative advantage in the manufacturing sector, but new industries cannot develop due to competition from industries in the course of development. Therefore, in order to stimulate new industries, temporary government support is required until the relevant sectors become sufficiently "mature" so that they can successfully compete with external producers. However, in addition to the theoretical argument, there were a number of economic and political motives.

Although this policy has been criticized, it has been successful when applied for a limited period of time and in sectors that have a real potential comparative advantage; South Korea, Taiwan, and several Latin American countries have used this strategy not as an end in itself, but as a preliminary phase of the industrialization process.

Developed countries have responded to these policies through relatively discriminatory measures against developing countries; such measures have been differentiated/implemented by each developing country. The second round of WTO negotiations is considered as a "development round", one of the issues of which is to improve the access of developing countries to the market of developed countries. Despite some discrimination, developing countries are in the developed country market. Despite discrimination, developing countries have managed to improve their positions in the global industrial goods market.

This development was facilitated, first of all, by the fact that developing countries managed to become exporters of standardized products. Secondly, developing countries have become less expensive places to assemble technologically advanced products for multinational companies from industrialized countries that have provided the necessary technologies, components, marketing programs, and sales networks. Third, barriers to imports from developing countries (in particular, voluntary export restrictions, anti-dumping and countervailing duties on subsidized imports) are not so strong. They did not exclude, but only limited the growth of exports of new countries entering the world market of industrial goods. Жители в Сургуте делают ставки на спорт и играют в казино через Мелбет . Мелбет работает легально, предлагает фрибет на первую ставку и бонус на первый депозит. Регистрация занимает три минуты. Контакт: +7 (800) 776-45-20.