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Home -> News -> World -> Full Story
WB slams rich countries' hypocrisy over trade policies
Friday, September 27 2002 23:03 Hrs (IST)

Washington: The World Bank on September 27 accused rich countries of "hypocrisy" over trade policies that push developing countries to open their markets while not doing enough to open their own.

"It is hypocrisy to encourage poor countries to open their markets while imposing protectionist measures that cater to powerful special interests," World Bank chief economist Nicholas Stern said.

"Rich countries should lead by example."

Developed countries could offer a better example by opening their markets more to products from the developing world, he told a news conference ahead of an annual meeting of the World Bank and International Monetary Fund.

"Improving market access for developing countries is one of the most important steps that the rich countries could take to help fight global poverty," Stern said.

Former IMF deputy managing director Stanley Fischer urged rich countries to adopt trade polices less harmful to developing countries.

"Industrial countries should take their responsibilities more seriously," he said. "It is nothing short of a scandal what's being done to developing countries."

IMF chief economist Kenneth Rogoff also pressed for trade barriers to be lifted, saying poor and rich countries alike would benefit.

"Multilateral liberalisation will secure the greatest benefits to all and help to neutralise the influence of special interests," he said in a statement.

A joint IMF and World Bank study found that, despite recent initiatives in the major industrialised countries to offer preferential market access for the poorest countries, "large pockets of protection remain in products of particular interest to developing countries".

Protectionist measures were often aimed at products that developing countries are best able to make such as textiles, clothing and agricultural products, it said.

Stern said developing countries' products were being blocked by subsidies, anti- dumping measures, and other non-tariff barriers such as labeling requirements.

Rich countries spend about $ 1 billion a day in agricultural subsidies, nearly six times what developing countries receive in aid, he said.

Rogoff said limiting the aid rich countries give to their farmers would generate huge gains.

"Removing industrial countries farm support would provide at least $ 100 billion a year in benefits in the short run, and over time the gains would be even larger," Rogoff said.

The IMF and the World Bank have come under steady fire from activist groups that claim that the two institutions' recommendation for greater market liberalisation is harmful to developing countries.

Rogoff acknowledged that, in regard to agricultural markets, liberalisation could bear ill-effects for some developing countries.



AFP
Copyright AFP 2001





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