Research paper
EAP2ww055
10/06/05
Abstract
This paper argues that the World Bank should manage fairly, and then they should lead fair trade between the poor countries and the rich countries. First, the World Bank should support the poor countries’ field of agriculture. Second, they should take care of the poor countries’ economic condition. Finally, the World Bank should encourage fair trade.
I have been concerned about the World Bank since 1998. In 1998, the domestic economy of Korea was difficult, so we requested funds. At that date Koreans spent a hard time; at the same time Koreans also became interested in the role of the IMF and the World Bank. It occurred in my school days; I learned about the effects of IMF and the World Bank on Korea’s economy. Now, we have overcome many difficulties. The role of the World Bank is giving to the poor or distressed countries, and then they recover their debt; however, for the Third World it is difficult to pay their debts. “The poor farmers make up most of the billion of people living on less than a dollar a day” (Beveridge, 2005, par. 4), and the World Bank did wrong in the process of recovering. An example is the World Bank’s forcing to open poor countries’ markets, or prohibiting raising tariffs on poor countries’ agricultural staples. “Too many of farmers have been driven to destitution by the rule and practices that govern agricultural trade” (Beveridge, 2005, par. 4). The World Bank also shapes a policy about developed countries’ debts cancellation; it means that the IMF and World Bank should not impose conditions on poor countries seeking debt relief (Davies, 2005). However, it also causes many problems. Suppose we agree that we should continue to pay taxes (Davies, 2005), or the rich countries should have to undertake debtor’s duties. Nowadays the World Bank commits unfair practices; “the World Bank is perpetuating third stage slavery in developing countries” (Phiri, 2005, par. 1). The World Bank should seek fairness in the situation in three ways.
First, the World Bank should support the poor countries in the field of agriculture. Agriculture is one of the major industries in developed countries. The World Bank and the government of developed countries should support their agriculture. The other rich countries have many major industries, but many poor countries have few major industries. For instance, most poor countries give priority to labor; they do not reach a high-tech industry. Therefore their industry depends on basic technology, as in agriculture or manufacture, because they do not have a high-tech or economic stabilization, but the poor countries have a large population. It is the poor countries’ potential power. The poor countries should utilize their labor force, cheap and plentiful labor. The poor countries have factors that make developing agriculture possible. Consequently, the government of poor country and the World Bank should bring up the poor countries’ agriculture. However, the IMF and the World Bank compel the developed countries to import rice, wheat, corn and other staples (Beveridge, 2005). This is unfair. The World Bank should take a neutral attitude between the rich countries and the poor countries; nevertheless, they deceive us with the rich countries. This curtails the fair trade and decreases the morale of the poor countries. For example, Arkansas, in the U.S., earns the largest profits, $123 million (2002-03). They made a profit of 50% of exports to Cuba and Haiti (Financial Express, 2005). The World Bank should persuade rich countries to take in the staples of poor countries. Although the rich countries have many advantages in agriculture, they should import the agricultural products of poor countries. It is a kind of subcontract or specialization. In order to sell the rich countries’ agricultural products, the poor countries should be educated in agricultural technology. At the same time, the World Bank recommends the agricultural technology of rich countries. Although the developing countries’ major industry is agriculture, they do not have high technical skill. The World Bank should encourage technical skill in agriculture. They should teach the method of agricultural technology. For instance, the World Bank asks the rich countries for help, so the rich countries teach a method of agricultural technology. For example, they should support the introduction of high technique in agriculture, farm appliances or farming machines in the developed countries.
Second, the World Bank should take care of the poor countries’ economic condition. The poor countries have more disadvantages than rich countries, so the World Bank should think over this point. They should defend tariffs. The IMF and the World Bank should make flexible rules that help the poor countries against the rich countries. For example, they should restrict the opening of their markets, for rice, wheat, corn and other things, and maintain tariffs in poor countries. However, rice is one of the important crops in the world; two billion people are involved in its trade. The WTO should give help to poor countries that defend their rice tariffs. However, in practice, the rich countries claim it is only because of their profits that they want to cut tariffs (Beveridge, 2005). If it becomes a reality, the poor countries will become more hungry, and poorer, unlike the rich countries. “Under the WTO negotiations, India and China, together home to 820 million rice farmers, are among 13 developing countries that could be forced to slash their rice tariffs” (Beveridge, 2005). And in 1995, the IMF compelled Haiti to reduce their tariffs on rice; as a result, their rice imports doubled (Financial Express, 2005). The rich countries want to reduce tariffs, because of extension of their market for much more money. The rich countries obtain continuous profits from the poor countries; for this reason, the World Bank and WTO should make impartial rules and defend tariffs. With all one of the largest rice exporter is the United State when the rice costs double (Beveridge, 2005). If this situation will continue, the poor countries will never recover their economy. Global Justice Zambia executive director John Phiri said, “We need to protect the interests of the country first before those of the IMF and the World Bank. They are killing us, especially the youth who are dealing with poverty every day,” (Phiri, 2005, par. 12). Moreover “Abruptly lowering tariffs on food in a country where most people are poor farmers is a recipe for disaster” (Beveridge, 2005, par. 11). Therefore the World Bank should manage flexible tariffs. For example, when the poor countries trade with other rich countries, the World Bank charges a high tax against the rich countries. At the same time, they should defend the poor countries’ markets against rich countries’ force. According to Davies (2005, par. 25), “they are likely to be more effectively spent improving poor countries’ international market access.” And the World Bank in cooperation with WTO should open the poor countries’ market by a less aggressive method. Although this is the age of globalization, the market has no frontiers. As a result, people can buy everything, everywhere, at every time. However, most of the rich countries control the world market, because they have high technical skills, abundant employees and a strong power that enables them influence world economy or international economic organizations. “The U.S. manufacturing sector has been pressing the Bush administration and Congress for action, arguing that Chinese goods helped by the undervalued Chinese currency gain an unfair competitive advantage over U. S. – manufactured products” (States News Services, 2005, par. 8). For that reason, they can get the advantageous terms. The World Bank should protect the poor countries’ rights when they sell their goods in the domestic market. The rich countries force the poor countries to import by reason of globalization. The rich countries have many advantages, so they are able to deal their own products more cheaply than the poor countries’ products. If this situation is maintained, the poor countries’ damage will grow bigger. Therefore the World Bank should control when the rich countries’ goods go into the poor countries’ market.
Third, the World Bank should encourage fair trade. The World Bank should control fairly both poor countries and rich countries. They should teach a high method of trade. Most developed countries do not have the advantage when they trade with other countries, so the World Bank should help the poor countries to economic growth in cooperation with the rich countries. The World Bank and G8 nations, Canada, France, Germany, Italy, Japan, the United Kingdom, the United States and Russia, should teach the way of trade. However, the poor countries do not have enough money to be introduced to rich countries’ high method, so the rich countries provide assistant funds. Korea and the other Asian countries have developed by improved economic form and the practice of the government (Fisher-Thompson, 2005). At the same time, they should be on neutral ground between the poor countries and the rich countries. For instance, now the World Bank encourages fair trade and its purpose is debt cancellation of the Third World (Davies, 2005). However, it has a problem, that the rich countries have to pay the debt, instead of the Third World. This means that developed countries’ debt is to richer countries’ governments, the World Bank and International Monetary Fund. This aim is under control of G8 leaders, but they aggravate unfair international debts. The aim brings disgrace to the poorest countries. It is not the best way to cancel debts of the poorest countries. Cancellation of Third World debt does not make some changes to policies and attitude of the poorest countries. The World Bank should help developed countries to pay back their debts, because the cancellation of Third World debt does not make some changes to policies and attitude of the poorest countries. If the World Bank cancels developed countries’ debts, they will decrease their volition about repayment. It will cause bad influence to both the World Bank and to debtors. In this way this the World Bank should pay attention to fairness.
I think that the role of the World Bank is important. The whole world is closely connected with the economy, but each country’s economic conditions are different. Consequently, the World Bank should mediate continuously between the rich countries and the poor countries. The goal of the World Bank is global poverty reduction, improved living condition and support of developing countries (the World Bank Group, 2005). Therefore the World Bank should help the poor countries and encourage the rich countries to help the poor countries.
Bibliography
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Davies, D. (2005, June 30). Should we write off third world debt? The Western Mail. Retrieved from LexisNexis, August 31, 2005.
Phiri, S. (2005, April 12). Zambia; IMF, World Bank are robbing us, Africa News. Retrieved from LexisNexis, August 31, 2005.
Fisher-Thompson, J. (2005, April 20). World Bank nominee seeks education on Africa’s need, US Fed News, Retrieved from LexisNexis, Sep. 21, 2005.
Financial Express. (2005, April 18). Fair trade rules can lift millions out of poverty, Global News Wire- Asia Africa Intelligence Wire, Retrieved from LexisNexis, Sep. 21, 2005.
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