All posts tagged 'WTO'

Why the Sovereign Economic Model is better than WTO trading system


There are many criticisms of the WTO, there is even a dedicated page
https://en.wikipedia.org/wiki/Criticism_of_the_World_Trade_Organization#:~:text=Yet%20several%20criticisms%20of%20the,corporations%2C%20undermines%20local%20development%2C%20penalizes

It says:
-only serves the interests of multinational corporations 
-undermines local development
-penalizes poor countries
-is increasing inequality
-restricted access to food and healthcare
-market distortions cost developing countries $700 billion annually
-encouraged the growth of neoliberalism
-aggravated the divide between the Global South and North
-breaking down the rural population
-issues of labour and environment are steadfastly ignored
-resulted in reduced welfare for developing countries


WTO rules are beneficial for large trading companies and countries, but extremely disadvantageous for developing countries with "infant" (developing) industries and societies. Strong rich countries have many levers to influence WTO policies or countries themselves, while the poorer and smaller countries are forced to go along.

The Sovereign Economic Model, in contrast to the imposed trading rules by WTO, strives to create a more sovereign economy, for the state and its citizens, using tools such as state capitalism, industrialization, import substitution, market regulation, support for agriculture and small manufacturing business. It's aim is the support and structuring of the economy to better suit the country.