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Dear Delegates, Your senior staffers, Yanbo and I, are thrilled to welcome you to the YMUN XL Economic and Financial Committee! The topics we have outlined for you this year offer a framework for discussing some of the most significant debates in today's international economics and are flexible enough to cover a wide range of issues in their discussion. But first, we would like to introduce ourselves. Hi everyone. My name is Yanbo and I'm a sophomore Architecture major here at Yale. I'm pleased to welcome you to the ECOFIN committee as one of your chairs! Between architectural design projects and my deep and unadulterated love of Model UN, I also am a part of the club climbing team and Chi Psi Fraternity, manage one of Yale's student-run late-night college eateries, and experience profound existential crises such as "What will I do with my life?", "Is reality an illusion of consciousness?", and "Nutella or peanut butter?" I attended several MUN conferences in high school, but this will be my first time moderating at YMUN. What I mainly want to do is make sure the people at the front of the committee don't slit each other's throats and the people at the back of the committee aren't falling asleep, even if they're just passing flirty notes or texting their moms. Needless to say, I am very excited, though maybe not as excited as the delegate from the US. I am Ekaterina Botchkareva, a sophomore in Calhoun. If all goes well, by the time of the YMUN conference I will be a happy Ethics, Politics, and Economics major. Apart from being a survivor of the Directed Studies program, I am a writer for Rumpus Magazine and I love all things writing-related. My first exposure to YIRA was as a junior staffer for YMUN last year, and since then I have tried to participate in the organization as much as possible. I hope you will find this conference as enjoyable and educational as I did! Please feel free to contact us with any questions or concerns that might arise. We hope you enjoy studying, discussing, and coming up with creative solutions to the issues outlined in this topic guide. Best of luck! Yanbo Li (yanbo.li@yale.edu) Ekaterina Botchkareva (ekaterina.botchkareva@yale.edu)
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TABLE OF CONTENTS History of the Committee Topic History Current Situation Questions to Consider Suggestions for Further Research Tariffs and Subsidies in International Food Trade Topic History Current Situation Questions to Consider Suggestions for Further Research Role of the Committee Structure of the Committee "##$%#$&'! ! ! ! ! !
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History of the Committee The Economic and Financial Committee is
international cooperation, and aid. Essentially,
the second of the six Committees of the General
ECOFIN is accountable for the economic aspect of
Assembly. As markets become increasingly
most any imaginable issue, whether international or
interconnected through globalization, ECOFIN
national. Consequently, sometimes this
plays the vital role of designing a fair and
committee's challenge is to address local issues
productive framework for international trade, and
using global solutions. Most discussion concerns
ensuring that growing economies are successfully
macroeconomic policies and trade theory.
integrated into the world system.
It is important to challenge the extent to which the current economic system is the only possible way of arranging the world economy. Only several decades ago, ECOFIN pursued a very different international economic policy than it does today, favoring a market-based approach with few global regulations (as opposed to localized intervention), whereas today it recognizes the need to actively shape trade and development through macroeconomic policies and international efforts.
ECOFIN addresses the economic side of international issues. http://www.amun.org.br/2009/index.php?option=com_content&vi ew=article&id=11&Itemid=26
In the past, ECOFIN has used its economic perspective to address a gamut of issues related to development that can be addressed on an international level: environmental sustainability, gender equality, security, international monetary policies,
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! Topic History Modern issues of inequitable trade relations
instance, Raul Prebisch, an essential proponent of
and investment can be traced back to the conclusion
dependency theory, favored “Import Substitution
of World War II. The decolonization efforts of the
Industrialization� to global integration (for
period coincided with the growing trends of
developing economies). As the name suggests, this
globalization and advanced industrialization. Many
policy assumes that fledgling industries in
of the fledgling countries created out of the ashes of
developing nations might not be capable of
the war, however, were not ready to be swept up in
competing in the global market and require
the world system designed by the already developed
government intervention to regulate the
superpowers. The vision of the world economy
importation of foreign goods; thus imports are
forged during the Bretton Woods conference was
gradually replaced by products of domestic industry
designed by (and consequently mostly for)
and the "infant industry" is given a chance to
Western developed economies, placing Asian and
develop [1]. Raul Prebisch and Hans Singer argued,
Middle-Eastern economies at a relative
in what became known as the Singer-Prebisch
disadvantage.
thesis, that there were nations that were not ready to confront the hegemonic world powers,
A. Trade and Development Theories New economic and political theories
economically or culturally, and that they were vulnerable to being exploited in inequitable trade
speculated how the unequal system would play out
relations. Consequently, dependency theorists were
in the face of the inexorable globalizing trend.
skeptical about economic globalization, and
There were two essential questions that determined
believed that the more involved a developing
these theories. The first was whether it was
country was in the international market, the more it
beneficial for developing economies to be integrated
was vulnerable to fluctuations of international trade,
into the system of international trade. For
and the more dependent it became on the investment of foreign nations [2].
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countries, the "periphery", as they are referred to by Wallerstein [3]. In fact, any world system, as long as it was designed by the dominant developed nations, would be by definition unfavorable to developing ones. Since modernization theory argued that all nations progressed through the same phases of development, it implied that developed nations were capable of, and indeed responsible for, leading other states along the path they themselves Raul Prebisch believed ISI policies were the best way for developing
had already traveled. The Marshall Plan, for
countries to become dependent on the developed world.
example, was inspired by this very idea [4]. Most
http://jornaldebrasilia.com.br/site/imagens/blogs/raul_prebisch.jpg
development policies of Western nations after the
Modernization theory, on the other hand, described development as a set of phases that all nations progress through in a similar manner. According to this theory, it made sense for developed nations to foster the same progress they had already undergone in developing states. In this case, the integration of growing economies into the world system was an essential step in the progress of a nation. Another distinguishing question was the level of involvement the international community should have in leveling the playing ground between developing and developed nations. Because of its philosophical origins, dependency theory was wary of such interventions. Both Marxist ideas of imperialism and Wallerstein's World System Theory - major influences on dependency theorists - claimed that the current international order was not necessary or natural. Rather, it was a system imposed by the ideologies of the developed countries, the “core”, upon upon the developing
war focused precisely on promoting certain economic and political practices that they considered to be beneficial, such as democracy, anti-communist sentiment, and industrialization. As a counterpart to the Western Europe’s Marshall Plan, the Soviet Union formed the Council of Mutual Economic Assistance in 1949. Comecon, as it was known, was the organization of the Soviet Union and nine of its satellite states into a zone of economic cooperation. It was intended by the Soviet Union to provide aid to Eastern European countries so as to minimize their relations with western economies or participation in the Marshall Plan. A significant part of Comecon’s importance was its political role of preventing Eastern European states from receiving Western aid. However it also offered an alternative to the Western model of development. Rather than invest directly in the countries in need of aid, Comecon facilitated the movement of technology, capital, and goods throughout the Soviet bloc. Theoretically
ECOFIN 8 ! this was supposed to allocate capital and industrial
As a result, wealthier nations would no longer strike
expertise in the countries that needed it most.
trade deals with developing states to give them an
However, as the Cold War intensified, it became
advantage in the international trade market. Nor
evident that the Soviet Union was in fact profiting
could developing nations protect their economies
from its trade within the Comecon to fund its
by forming preferential trade agreements with
technological and industrial race with the United
other developing countries.
States, and its costly war in Afghanistan [5]. Nonetheless, in terms of Wallerstein’s World System Theory, Comecon asserted its members ability to cooperate in order to pursue their own interests in the face of and outside of an order perceived as dominant. Ironically, development theories often reflect the ideas of developed countries as to what is the best for those less developed, rather than being based directly on the opinions of
The system designed to profit all was actually only profiting those
those countries being aided. Many developing
who had designed it. http://www.oxfamblogs.org/fp2p/wp-
countries preferred a more authoritative
content/uploads/polyp_cartoon_economic_growth.jpghttp://www.o
international structure in which resources would be allocated by an international authority, so as to make up for the unequal economic order. In 1947, however, the General Agreement on Tariffs and Trade established the goal of generally lowering tariffs and decreasing countries’ abilities to form preferential trade agreements amongst themselves, effectively embracing the free-market philosophy.
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xfamblogs.org/fp2p/wpcontent/uploads/polyp_cartoon_economic_growth.jpg
B. Evidence of Trouble While this debate continued, it became increasingly obvious that regardless of who was right, the states that had entered the system on a disadvantaged footing were having trouble. Although the Marshall Plan was successful in many
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European states, when the US attempted to extend its policy further during the Cold War, it became increasingly ineffective. Import substitution industrialization too ran its course when the economies of Latin America began to decline relative to those of East Asia, which had replaced ISI with export-oriented policies [6]. In Africa too, following the creation of the Preferential Trade Area of Eastern and Southern Africa in 1981, the
Natural resources turned out to be more of a burden than a blessing. http://erikkrantz.files.wordpress.com/2011/04/resource-curse1.jpg
region pursued a policy of ISI. The high level of government involvement in the process of industrial development, however, discouraged both
C. The Resource Curse Meanwhile, there arose awareness about an
domestic and foreign investment and by the 1990’s
effect called the resource curse or the paradox of
exports and GDP of the region had decreased while
plenty. Described by Richard Auty in 1993, it
external debt had risen drastically [7]. As a result of
became the most popular way of summarizing the
economic disintegration, political crises plagued
array of issues that specifically plagued resource-
countries all across what came to be known as the
rich economies. This effect became a central
Global South: the Tombalbaye autocracy in Chad,
concern of development economics because it
the FARC operations in Colombia, the Mau Mau
contradicted the hope of previous theories that had
uprising in Kenya, and apartheid in South Africa.
counted on commodities to keep developing
The increasingly established divide
economies afloat. To the contrary, Auty found that
between the developed countries of the North and
the larger the proportion of a nation's GDP came
the less developed countries of the South gave rise
from exporting commodities, the higher the
to the conception of the North-South divide,
probability that the country faced countless issues:
North-South relations, and, most importantly, a
corruption, myopic economic policies, the rise of
rift in the world system. This led to developing
sectoral violence, vulnerability to the fluctuations of
countries of the South progressively forging their
international markets, misallocation of profits from
own identities and their own paths of development
the resource sector, and the underdevelopment or
through an alternative system of trade agreements
unequal development of other sectors of the
and organizations.
economy.
ECOFIN 10 ! The resource curse, however, was a contentious subject. Although there was a clear correlation between reliance on natural resource exports and political and economic hardships, many explanations of the connection turn out to be flimsy; there is not enough data, variables are not clearly defined, and examples do not control for external variables [8].
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Current Situation The fitful development of the past fifty
http://www.cs.man.ac.uk/CCS/res/images/res12c.gif
years finally brought attention to the issue of inequitable trade relations. Faced with the experience of political deterioration and economic
A. Fixing the System In 1964, the United Nations convened the
stagnation in the Global South, it became necessary
first Conference on Trade and Development. Since
to deal with the realities and the data. From the
then, the conference has become a permanent body
rising awareness of faults in the international
of the United Nations. UNCTAD holds conferences
system of trade sprung a series of organizations and
every four years and formulates policies relating to
movements that set out to either mitigate the effects,
equitable international trade and the successful
or overhaul the system entirely. Today's state of
integration of developing economies into the global
affairs is defined by these organizations, started in
market [9]. Two years later, in 1966, the UN
the 70's and 80's as a response to the failures of the
Development Program was launched. It is now
past system, so we begin by examining where
involved in 6000 projects across the world,
today's organizations began.
coordinating international development efforts and providing advisory, training, and financial services to local communities [10]. It focuses a great deal of its efforts on the promotion of democracy and receives all of its funding from voluntary contributions [11]. For instance in 2011 UNDP undertook a project to assist in the development of assisting in the elections in Egypt. The project encompassed aspects ranging from distributing information on voting rights to facilitating access to voting facilities [12]. In addition to this increased attention to development on a systemic level, another shift in the international community’s approach to development was the trend away from foreign direct investment, and towards alternative methods of support. One such method currently in development is microfinance. Microfinance is a form of
Despite all the theories, the world system seemed to be failing
investment that functions through small, personal
where its help was needed most.
loans that can have significant effects in regions
ECOFIN 12 ! where they mean the difference between nothing
ineffective. According to Harry G. Johnson's article
and something. Although there are concerns about
"Economic Policies toward Less Developed
microfinance too because the interest rates at which
Countries," the proposals are not only ineffective in
such a risky venture can possibly be profitable are
achieving their purpose, but impose unnecessary
cripplingly high, the method still remains popular
and undeserved burdens on developed countries by
[13].
subjecting them to potentially monopolized Another new method is debt relief. Some
resource markets [16]. This fear of monopolizing
nations have accumulated so much debt from
power of resource exporters stemmed from the
investments and loans that they now spend more
OPEC oil crisis of 1973 in which the member states
resources paying back that debt than they do
announced an oil embargo in response to the US
fueling their development. Rather than pour more
support for Israel in the Yom Kippur War.
money in and increase the amount of debt, the IMF
In 1995, the World Trade Organization
has implemented the HIPC initiative that offers
absorbed and replaced the General Agreement on
debt relief in exchange for demonstrated shifts in
Trade and Tariffs. Whereas GATT had previously
macroeconomic policy by countries suffering
set out to establish an international economic order
greatly from debt [14].
based on market economy, with low, mutual tariffs, the WTO acknowledges the importance of a
B. Overhauling the System In 1970, the General Assembly adopted the
Generalized System of Preferences passed by the UN Conference on Trade and Development. The
New International Economic Order [15]. The
GSP Program provides duty-free entry to products
intention was to replace the foundations laid down
from designated developing countries, in an effort
at the Bretton Woods conference, acknowledge the
to protect the growing industries on the world stage
fundamental difference in economic systems of
[17]. The WTO started the Doha Development
developed and underdeveloped markets, and
Rounds in 2001, focusing specifically at gearing
address the need for a system of international trade
trade policies toward developing countries. As it
that mediated between the two systems. Some
states on its website, "it aims to produce the first
argue, however, that the overhaul has been
major overhaul of the system in the 21st Century".
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a domestic problem of developing states. This makes it hard to access from an international angle. There are several steps being taken, however, to address certain aspects of the resource curse. For instance, resource-rich countries often face the issue of having underdeveloped nonresource sectors in the economy, leading to a dual economy [18]. This perpetuates the economy's dependence on the resource sector, because it becomes unprofitable to invest in other industries. The more the economy is dependent on its commodities, the greater the effect of the resource curse. And so on. This is precisely what fair trade attempts to The Global South struggles between the identity imposed upon it from without and the identity it forges through its
counteract. Fair trade ensures a certain standard of working conditions and environmental
own international system.
sustainability for a product of a developing
http://moacir.com/donkeyhottie/wp-
economy, which is then sold for a slightly higher
content/uploads/2010/06/southern_half.png
price in a more developed state. The profit,
Another way of fundamentally rethinking
supposedly, returns to the workers that crafted the
world trade, is by splitting it into Northern and
product. Products certified by fair trade range from
Southern spheres. This is precisely the idea behind
agricultural produce to clothing and crafts.
the Unit for South-South Cooperation and Group
Organizations that certify products as fair trade,
77, two associations of developing countries. An
include Fairtrade International, Network of
increasing number of southern developing
European Worldshops, European Fair Trade
countries exchange resources, capital, knowledge,
Association, and the World Fair Trade
training, and technology. These associations,
Organization. Collectively these organizations are
outside the global format, empower developing
called FINE.
nations to asserting their own course of development and their own terms of trade.
Fair trade, however, often comes under fire. Although there are certain studies that claim there is an improvement in working conditions and
C. Dealing with the Resource Curse This is one of the trickiest issues for this committee to address because it is, for the most part,
productivity [19], it is still unclear to what extent fair trade practices have the intended effect, or
ECOFIN 14 ! whether the profit remains in the hands of
against such protectionist policies, which first of all
employers rather than making it to the workers.
monopolize the market for that good in the
There is also another movement, trade justice, that
importing country, and could potentially lead to
claims to be an alternative both to the current
labor exploitation in the exporting state. For
system and to fair trade. According to advocates of
instance, because of the cheap labor readily
trade justice, fair trade is actually part of the
available, China has often been accused of dumping
unequal structure, and developing states should be
since it can export much cheaper products than
able to make their own decisions as to what
other countries. China’s textile industry was
international trade policy they believe is most
deemed so harmful that it was actually subjected to
favorable to their development, rather than being
quotas in US and EU markets [22].
coerced into accepting terms of the IMF or the WTO for fear of not trade or loan restrictions [20]. Nonetheless, the fair trade movement has pursued many policies generally accepted as effective in fostering trade equality. One such measure is the anti-dumping laws. Dumping is the practice of exporting goods at a price lower than they are sold for in the exporting country itself. This is unofficially considered a predatory tactic, because it consists of subsidized businesses selling their surplus or larger businesses and economies to using economies of scale to sell their products for a cheaper price than small enterprises [21]. If left unchecked, dumping can flood developing nations with cheap goods, consequently harming its domestic industries and workers. Although the WTO does not precisely define or condemn dumping, it does allow countries to take actions
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Mobutu Sese Seko’s rule was plagued by corruption, nepotism, and kleptocracy. http://diyblogger.net/wpcontent/uploads/2012/11/Sese-Seko-Mobutu-9410874-1402.jpeg
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Whereas fair trade addresses the economic issue of a dual economy, transparency measures address several of the political issues stemming
corruption of certain governments, the argument in favor of amending the Reform Act failed. The issue with transparency is that it does
from the resource curse. Kleptocracies, regimes that
not directly imply accountability. Despite
launder state money, are prevalent among states
transparency efforts, many nations lack the civil
where large profits are reaped by nationalized
societies to stand up to their governments in the
resource industries [23]. Mobutu Sese Seko, former
face of blatant misuse of funds. In some cases, there
President of the Republic of the Congo, amassed a
simply isn't enough training for the public to read
fortune of five billion dollars through corruption
and understand the accounts, even when they are
and appropriation of aid money. Sani Abacha the
presented [25].
Dictator of Nigeria also made about four million
Another crucial issue when dealing with the
dollars off corruption. Out of the 20 most oil-rich
resource curse is property rights. A government's
countries, Freedom House, a human rights agency,
inability to ensure property rights could lead
rates only five as being free of corruption [24]. To
paramilitary violence as groups take the
avoid similar debauchery, agencies such as
enforcement of property rights into their own
Transparency International seek to raise
hands. Most commonly, insecurity about property
international transparency standards. Publish What
rights manifests itself in the lack of investment into
You Pay, a civil organization, promotes policies that
the nation’s capital, businesses, and infrastructure.
enforce transparency standards. One such initiative
Investors are hesitant to invest in an enterprise that
is the Equator Principles, upheld by a group of
could simply be shut down without an explanation,
banks that lend under conditions that the countries
as is the case in Russia [26]. The most infamous
or companies receiving loans uphold certain
instance was the forced bankruptcy of Yukos Oil
transparency practices. Another similar policy is the
Company, in which it has been discovered that the
Dodd-Frank Reform Act, passed in 2010, which
Russian government did in fact unlawfully
became a source of controversy, as it required US
expropriate one of the largest petroleum companies
resource-related multinational corporations to
in the nation [27].
publish all payments to the local government in a
Consistent breaches of property rights are a
way accessible to the general public. Multinational
significant component of what is known as the
corporations argued that it would be illegal in some
Lucas paradox - the observation that although the
countries to disclose such information, and that the
marginal utility of additional units of capital is
companies would have to stop conducting business
much higher in developing countries than in
in those countries. Whether this is a testimony to
developed ones, capital still seems to flow away
some corporations' shady practices, or the fatal
from developing ones.
ECOFIN 16 ! Both the causes and the effects of the unequal system of world trade are complex. It is important to keep in mind the fundamental difference between systemic and domestic issues. There are some issues, often times the root causes of the inequality itself, which stem from faults in the world system. There are others, mostly the effects, which stem from local problems of inadequate policy and economic decision-making. Although it is more complicated to have an effect in the local sphere without infringing on national sovereignty, it is important to target these issues on the ground, as well as the loftier issues of systemic inequalities.
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Bloc Positions GRULAC This region has historically pursued a policy of import substitution industrialization, advocated by Raul Prebisch, an Argentine economist and Secretary General of the UNCTAD. Structural adjustment programs gradually pressured South American economies out of ISI. Under these policies, the IMF and WBO would lend money under the condition that countries adjust their trade practices so as to limit preferential trade agreements and protectionist trade policies such as import taxes or tariffs. The region is dependent on the exports of raw materials to this day [28]. Relative political stability, however, has allowed for consistent cooperation among Latin American states. Groups such as Mercosur or the Latin American Integration Association signal the region’s assertion of the value of its own markets and its own trade practices. These associations are more than just free trade associations but forums for countries to share their technology, training, and culture. Consequently this region can use its relatively healthy internal relationship as leverage on the international stage.
African industrialization day is a time to reflect on the steps for Africa to take on the path to a more industrialized economy. http://media.tumblr.com/tumblr_luvff4IfZP1qlz3wr.jpg
advantage of countries with economies not reliant upon mineral resources [29]. China has the particular challenge of defending itself against accusations of dumping. Either it must adjust its export policies or it must explain to the WTO how its practices do not in fact constitute dumping, or else it could suffer from crippling quotas in various industries, similar to those imposed by the US and EU. Russia and Eastern Europe
Asia Normally cited as an example of a timely shift away from ISI to export-oriented industrialization. Although resource-poor compared to South America and Africa, Asia has had a history of well-adjusted policies and relative political stability, and has often been cited as an argument in the resource curse thesis for the
Eastern European nations still struggle to leave the shadow of the former Soviet Union. Russia exerts political and economic influence in the region and is not afraid to use it as demonstrated by the incident in 2006 when it cut off all gas supplies running through Ukraine to Europe. Attempts of Eastern European states at
ECOFIN 18 ! joining Western trade or international
the continent in line with UN standards. Some
organizations are often met with threats, or
initiatives include better transparency measures and
coercion to join counterparts lead by Russia itself.
the coordination and improvement of laws [32].
Such a counterpart is the CISFTA agreement signed
A secondary issue after securing investment
in 2011 between 8 states establishing a free trade
is working on African countries’ abilities to
zone [30].
negotiate profitable deals with potential foreign
Consequently, Eastern European nations
investors. Certain deals with MNC’s such as the
must assert their economic autonomy and decrease
Shell fiasco in Nigeria in 1996 result in more harm
their dependence on Russian resources so as to
than good because of the government’s inability to
minimize its leverage in political matters.
design and implement sustainable business
Russia’s central trade issue is that it is not
practices.
receiving enough investments to maintain its pace of development. Unless it adapts its property rights
Western Europe, United States, and
policies and can show investors that its markets are
Canada
worth investing in, the country is headed for stagnation [31].
These nations are willing and in a position to adjust the system they themselves designed. The question is how to put good will into effective
Africa
action, obviously without compromising their own This continent is the inspiration for the
countries economic intersts. There has been an
paradox of plenty and the Lucas paradox of capital
increasing disillusionment with measures such as
flowing away from developing economies. The
foreign direct investment because many nations
main goal is to persuade foreign investors to invest
have grown either dependent on it or have gotten
in African ventures, infrastructure, and capital. The
bogged down in its debt. The effectiveness of other
first steps towards this goal are a more stable
measures such as fair trade movements and
political environment, ensuring legal certainty, and
transparency enforcement are also put into question
improving property right. African organizations
and tested out to make sure efforts are invested into
such as the African Union established in 2001
the more effective method.
contribute to this effort by pursuing progress across
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Questions to Consider !
To what extent does the resource curse account for the current state of developing countries? In his essay, Michael Ross suggests that some of the research on which the idea of the resource curse is based was not rigorous enough to be held as evidence - variables are not well defined or controlled. By exploring some of the sources in his article, a great deal of details come to light about the data upon whose interpretation the entire issue of trade theory is based.
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Harry G. Johnson is also skeptical in his article about some of the assumptions behind the need for a new order. Is it the international community's responsibility to aid developing nations? If so, are the techniques that have been used (FDI, UNDP projects, transparency initiatives like TI) helpful? Are developing countries just shifting the blame? Is there a resource curse?
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Is the New International Economic Order an effective solution to the systemic problem?
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How can the international community combat the national effects of the resource curse without infringing on national sovereignty?
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How can transparency be translated into accountability?
ECOFIN 20 !
Suggestions for Further Research "Political Economy of the Resource Curse" by Michael L. Ross "The New International Economic Order" by Harry G. Johnson "!"#$#%& '(&)& #%*+',#-#. %/'#, (/0#,#$+'1#. 2&"&1,+"" by Aleksey Mihailov “Blood Oil” by Sebastian Junger for Vanity Fair Several organizations have been listed throughout this topic guide. Their websites offer a vast amount of data and information. UNDP: www.undp.org/3 UNCTAD: unctad.org/3 WTO: www.wto.org/3 IMF: www.imf.org/ Transparency International: http://www.transparency.org/http://www.transparency.org/ Freedom House: http://www.freedomhouse.org/http://www.freedomhouse.org/ Equator Principles: http://www.equator-principles.com/ Council on Foreign Relations: http://www.cfr.org/africa-sub-saharan/beating-resource-curse-africaglobal-effort/p28780
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ECOFIN 21 Topic 1.
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Tariffs and Subsidies in the International Food Trade Topic History All human beings eat food. You probably have a meal in your stomach right now. In fact, chances are high that you consumed that meal some time in the last five hours. Otherwise, this sentence is probably reminding you that you are pretty hungry. Humans need food to survive. Whether it is seen as a blessing of good crops from the gods or a much-needed replenishment of ATPproducing carbohydrates, the acquisition of food has been, from the beginning of civilization and beyond to this day, the primary concern of humanity. Without it, you can forget about world peace or ECOFIN or what shirts you are going to pack for YMUN XL. It is easy for us in a developed nation to take readily available food for granted, but in fact food continues to play a huge role in the balance of world economic power. This year, however, ECOFIN will be neither discussing world hunger nor debating the risks and benefits of GMOs. Rather, as you have read, the topic deals with the international exchange of food. For as long as humans have feasted on the flesh and fruits of the earth, humans have also exchanged them amongst one another. Food Trade before Modernity The sociability of human beings is among the most important factors in their evolutionary primacy. Early humans hunted together, gathered together, and ate together. From the first prehistoric systems of sharing and bartering, humans have been engaged in food trade. One of the earliest recorded trading posts was reported to be an Assyrian merchant colony in Asia Minor, in the 19th century BC.1 Since then,
Egyptians have traded across the Red Sea, Romans have moved goods all over the Republic, and the Silk Road has connected eastern Asia with Europe, creating an exchange not only of silk but also of spices as well as ideas. Throughout the ages, trade continued to influence culture.
Trade like an Egyptian (www.egyking.info)
One example of the lasting cultural effects of leveraging political power through the food trade can be found in the origin of Tuscan bread. Tuscan bread is made without salt. It is said that this bread came to be in Florence some time in the 12 th century. At this time, Pisa, which was in conflict with Florence, decided to block all trade of salt to Florence, thereby cutting it off from a precious resource. The Florentines responded by creating unsalted bread, now a staple of Tuscan cuisine.2 Six hundred years later and across the Atlantic, the protectionist policies of the British regarding their American colonies was a major source of discontent among the colonists. The Navigation Acts provided that colonists could only conduct trade on British ships and through
ECOFIN 22 ! Britain. It allowed the British to set up a beneficial mercantile system in which they had access to cheap sugar and rum from the Caribbean, fur and game from the North American colonies, and a stable market in which to sell their processed goods. In 1767, a set of tariffs known as the Townshend Duties were passed, among them a tax on the colonists for the import of British tea. When colonists skirted around these taxes by smuggling tea in from sources other than the British East India Company, the British Parliament passed the Tea Act in 1773. The Tea Act artificially reduced the price of British tea in the colonies, undercutting the price of the smuggled competition and compelling colonists to pay the Townshend taxes on British tea.3 The British, in effect, subsidized their own exports of tea to the colonies while levying a burdensome tariff within the colonies for importing the very same tea. This tariff, of course, led directly to the Boston Tea Party and the escalation of tensions which led to the American Revolution.
Sam Adams invited you to his event (en.wikipedia.org)
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Tariffs in American History Ironically, after its independence, the United States took on many of the same protectionist policies with which it had taken so much issue when employed by Britain. Supporters of Alexander Hamilton, and then later the Republicans, all urged for high protective tariffs to help the country grow industrial power. Despite efforts by Democrats to keep tariffs low in order to keep prices low for consumers and maintain a primarily agrarian nation, tariffs became a huge part of national revenue. In fact, import tariffs made up a great majority of government revenue until the adoption of the federal income tax in 1913.4 The United Nations and GATT In the mid-20th century, as more and more of the world caught up to industrialization and the majority of the world’s colonial empires had disintegrated, the global mood changed. Protectionism was no longer seen as a viable way to create a prosperous nation. It rather created industries which did well domestically under domestic tariffs, but could not compete in foreign markets due to lack of competition-driven innovation. 5 Trade liberalization – that is, trade with less barriers – between countries began to develop. Particularly in the wake of World War II, countries sought ways to promote economic cooperation. A group of fifty-odd countries sought to create a third international financial body to deal
ECOFIN 23
specifically with trade, in addition to the existing World Bank and International Monetary Fund. This was to become the International Trade Organization (ITO), a specialized agency of the UN. However, the ITO fell dead in 1950 when the United States announced that it would not be ratifying the ITO charter. Fortunately, 23 countries had come together at the same time to chip away at the barriers of protectionism with trade negotiations separate from the bid for ITO. These negotiations consisted of 45,000 tariff concessions affecting one fifth of the world’s trade. Thus, in June 1948, the General Agreement on Tariffs and Trade (and the provisional international organization of the same name) was born. For many years, GATT was the only international organization working to reduce tariffs across the board using several rounds of international negotiations.6 Thanks to these trade rounds, the world economy boomed in the 50’s and 60’s, and trade liberalization made significant progress from the pre-GATT protectionist era.7 However, GATT also encountered many problems, among them a failure to successfully liberalize agricultural trade, which we are now still dealing with.8 So, with the world economy globalizing and shifting towards services in the late 1980’s, GATT began a huge overhaul in the Uruguay Round of trade negotiations. The Uruguay Round and WTO The Uruguay round lasted from 1986 to 1994, and is hailed by the World Trade Organization (WTO) website as the largest trade negotiation in human history. As ministers of GATT sought to reform the system, they repeatedly stumbled when it came to agreeing on
agricultural trade. Along with textiles, agriculture made up one of the most sensitive topics in the debate to lower tariffs. This was primarily due to high import tariffs and export subsidies on agricultural goods in the US and the EU. They settled their differences in the Blair House Accord of 1992, but this for the most part only watered down these tariffs and subsidies rather than truly change them.
(www.wto.org)
Still, the Uruguay round succeeded in reaching some multilateral agreements to a variety of key subjects including tariffs, subsidies, textiles, agriculture, tropical products, and dispute settlement. The majority of nations committed to trade transparency. It also created the WTO as a permanent international body to replace GATT as a forum for international trade agreements.9 Specifics of Food and Agriculture Under GATT, agriculture had become a heavily distorted industry. The main issue was, and is to this day, this market distortion of agricultural goods. Developed nations had to lower tariffs under GATT, but they were not restricted from imposing import quotas or
ECOFIN 24 ! subsidizing domestic production. That is, developed nations artificially lowered the prices of domestic agriculture by subsidizing certain crops and reducing foreign competition. This was not only harmful to consumers due to the decline of agriculture sectors in most of these developed countries, but also because it heavily impeded the economies of developing nations reliant on agricultural exports. The Uruguay Round, however, provided restrictions on the following aspects: • •
•
market access — various trade restrictions confronting imports domestic support — subsidies and other programmes, including those that raise or guarantee farmgate prices and farmers’ incomes export subsidies and other methods used to make exports artificially competitive.10
The developed countries of the WTO decided to cut back more tariffs in a shorter span of time than developing countries (six years instead of ten) in an attempt to fix the market distortion.11 These initiatives coming directly from resolutions made in the Uruguay Round have by now already been executed. However, the process of removing market distortion from the international agricultural sector is still a major challenge today. The WTO is currently in the Doha Round of trade negotiations.
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ECOFIN 25
Current Situation ! Today, developed nations continue to spend billions of dollars supporting domestic agriculture sectors. According to the WTO and the Food and Agriculture Organization (FAO) of the UN, subsidies from these countries account for 90% of all market distortion.12 When we consider that agriculture employs 5% of the labor force in developed countries and 70% in developing countries,13 that figure amounts to a gross majority of the world’s farmers being unfairly outcompeted.
Overgrown and over-subsidized? (www.freestockphotos.biz)
When domestic crops are heavily subsidized, as corn is in the United States, the products of developing nations cannot offer a competitive price in that market. Furthermore, subsidies promote overproduction, so that surplus food produced cheaply in a developed nation will also be exported and outsell products of developing countries in their home markets. As a result, developing nations with land and labor viable for stable agriculture are importing more and more food from developed nations, creating a food dependence, hampering their own agricultural
sectors, and stunting the potential for optimal production and growth.14 As in the Uruguay Rounds, today’s methods of creating a fair market focus on three main areas: • Reduction of import tariffs and restrictions • Reduction of export subsidies • Reduction of domestic subsidies for agricultural production15 Leveling the International Playing Field While international economic fairness is key, it is important to note that resolution of this issue must not amount solely to rich nations giving concessions to poor nations at the cost of their own domestic productivity. The benefits of viable and sustainable agriculture, combined with fair and sustainable trade, can stimulate the entire world economy for generations. At the 2001 meeting of the WTO in Doha, Qatar, WTO members agreed to "comprehensive negotiations aimed at: substantially improving market access; reduction of, with a view to phasing out, all forms of export subsidies; and, substantial reductions in trade-distorting domestic support.” 16 However, exactly how these universally accepted goals will be achieved is the tricky logistic problem which we will have to solve. Combatting World Hunger Aside from market fairness, we must also look at how the distortion of the food market contributes to the imminent problem of world hunger. Many of the developing countries that are hurt by subsidies and tariffs also do not have the infrastructure to form their own prosperous agricultural sectors, even if the labor and land are available.
ECOFIN 26 ! As such, much of international aid to impoverished nations consists of the distribution of low-price agricultural surplus. While this keeps the people fed for a time, it exacerbates the systemic problem of downward pressures on food prices, making it impossible for local farmers to make enough of a living to escape poverty.17 A viable solution will look into how market development can aid hunger relief in the long term. Food insecurity is not only a problem in long-impoverished nations, but also in nations undergoing military conflict. In Syria, for example, the current crisis has led to a 40% decrease in wheat production alone. Due to a mix of infrastructure damage, population displacement, and economic sanctions, Syria’s food security is fragile.18 We must also look to create markets that are tenable even in times of crisis. Free Trade Agreements Aside from commitments made within the WTO, many nations have taken to creating regional free trade agreements, largely to the benefit of those involved. Depending on individual cases, such agreements can range anywhere from a simple lower-tariff agreement among countries to a completely duty-free and quota-free exchange. The largest of these free trade agreements is the North American Free Trade Agreement
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(NAFTA), which unites Canada, the United States, and Mexico. Adopted January 1, 1994, the agreement has by now phased out most import duties between the United States and Mexico19 (trade between Canada and the US had already been duty-free).
Cooperation! Yay! (han-cars.ru)
In terms of combined purchasing power, NAFTA is the largest trade bloc in the world and links 450 million people and $17 trillion worth of goods and services, according to the office of the United States Trade Representative. Since the agreement, trade between the partners has increased greatly with benefits to each country. The consumption of American corn in Mexico, for example, has become key in Mexico’s food security.20 Another similar agreement, the ASEAN Free Trade Agreement (AFTA) joins the bulk of the ASEAN countries, and within this agreement Brunei, Indonesia, Malaysia, the Philippines,
ECOFIN 27
Singapore, and Thailand have already brought most of their tariffs down to the 0-5% range.21 While regional free trade agreements are undeniably beneficial to trade liberalization, they are most often conducted between countries of similar economic power. In cases where a developed nation and a developing nation are partnered together, as is the case with the US and Mexico, problems can arise. Biofuel Subsidies In 2007, Mexico suffered a tortilla crisis, in which the price of tortillas, a major dietary staple which contributes 40% of dietary protein for a poor Mexican, more than quadrupled. This national food crisis forced then-President CalderĂłn to unofficially cap prices for the first time since the signing of NAFTA and led to angry protests known as the “Tortilla Riots.â€? 22
Food or fuel? (www.vermonttiger.com)
Along with market speculation, much of the blame for the price spike was given to the new popularity of biofuels, particularly corn-ethanol. As the US, a major producer of corn, began to subsidize its crops toward the production of
ethanol rather than food, supply decreased and prices jumped (to make long story short). On the other hand, increased international prices for agricultural commodities due to divestment for biofuels also offers an opportunity for agriculture in developing nations. With increased demand for food commodities, poorer countries can take advantage of an opportunity to gain better foothold in the global market.23 However, in order to do so, developed nations must also alleviate their own biofuel subsidies. Furthermore, we must consider the dangers of divesting too much food commodities to biofuels, lest the Tortilla Riots become a regular occurrence. A viable solution should consider both the benefits and risks of the biofuel industry as it related to the international food market.
ECOFIN 28 !
Bloc Positions !
The ultimate goal of this committee will be progress toward trade liberalization so that all countries can benefit from Mother Nature’s abundance as much as possible. However, countries will disagree over how much liberalization should be implemented and in exactly what ways. Naturally, some countries will have a closed stance that will not support liberalization at all. It will be important to ensure fair market access while catering to each country’s definition of “fair”. It is also important to note that even in cases when countries want the same thing, they may disagree on the timetable of execution. European Union The EU is itself a member of WTO, and as such, supports “multilateral rule-making, trade liberalization and sustainable development.” 24 Members of the EU are also engaged in the Everything But Arms Initiative, through which imports from least developed countries enter the EU without tariffs or quotas.25 However, each nation individually has different policies, and the developed countries of Europe have been historically some of the most stubborn when it comes to reducing protectionist
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measures. Great Britain, for example, continues to give large subsidies to its own farmers.26 In these cases, compromise between the rights of domestic farmers and investment in a global future will be key. Africa With underdeveloped economies and highly viable land, many countries in Africa stand to gain the most from freer agricultural trade in the long term. As it stands, African countries tend to be net food importers: though they are highly dependent on their limited agricultural exports, they must also import cheap foreign food in order to feed their citizens.27 The African Union has ongoing initiatives to strengthen regional free trade in order to increase the competitiveness of local products on a world scale, and I would expect delegates to do the same. The AU is also working on infrastructure to empower private-sector food producers.28 Under current systems, however, global protectionism has distorted the food market and made it difficult for African farmers to compete. In order to solve this problem, any trade liberalization resolution must have the teeth to be
ECOFIN 29
truly effective. However, African delegates must also make sure that liberalization occurs not too fast and in a structured manner, for the sake of food security. If cheap imports of food become unavailable before African countries have the infrastructure to produce enough food for themselves, the effects could be disastrous. The Agriculture and Food Security Division (AFSD) of the AU and the Comprehensive Africa Agriculture Development Programme (CAADP) are good sources for more information. Asia In 2001 at the beginning of WTO’s Doha Round of trade negotiations, China and India called for a large reduction of agricultural subsidies from the US and EU. Since then, however, China and India have grown their own agricultural subsidies substantially, such that China’s agricultural subsidies in 2012 are estimated at $160 billion, more than twice that of the EU.29 China is a net importer of grains and a net exporter of fish, fruits, and vegetables, and due to its enormous size has a considerable stake in the future of food trade policy. Historically, China’s state-controlled economy has kept it highly protectionist. While much of this has been reduced since it joined the WTO in 2001, China’s support for domestic agriculture remains considerable.30 Similar to the AU, countries in the Association of Southeast Asian Nations (ASEAN) have committed to regional cooperation to strengthen both agricultural competitiveness and food security.31 As it stands, ASEAN countries generally have much to gain from agricultural trade liberalization, both in terms of agricultural output and GDP.
North America NAFTA created the largest free trade area currently in existence.32 Since it united the US, Canada, and Mexico in 1994, responses have been varied regarding its effectiveness. While overall the agreement has been a huge economic success for all three partners, negative effects have been seen. In some cases, Mexican farmers have been unable to compete against the low prices of tarifffree, subsidized American corn.33 The Tortilla Riots are another example of the negative consequences of such a dependency. While NAFTA has been undeniably successful, its highs and lows provide good lessons for similar agreements in the future. Specifically the United States is by itself another big player in the global agriculture market. Its agricultural subsidies totaled $19 billion in 2012.34 That being said, the US “is pursuing trade liberalization with many developed and developing countries.” 35 US policy will involve balancing incentives for global growth through liberalization and protecting its power base of domestic farmers and ranchers. Official US agricultural trade policy can be seen here: http://www.fas.usda.gov/itp/policy/whatis.asp .
ECOFIN 30 ! !
Questions to Consider Though it would benefit them to compete in the global food market, many developing nations, particularly those in shortage of food, rely on the subsidized food exports of developed nations to feed its citizens. If subsidies are reduced, food prices could increase, leading to starvation. How can we help developing nations compete in agriculture without hurting the hungry? Many farmers in developed nations rely on subsidies to have a good and guaranteed income. How can we empower their competitors overseas while staying fair to these individuals? Many crops and entire agricultural sectors, such as corn in the US, are not viable from an environmental viewpoint. Should countries whose climates and terrain are better suited for certain crops be given preference for those crops? Reductions of export subsidies, import tariffs, and tariff-quotas have been discussed before, but are still a point of contention. What changes can be made so that these reductions can be more effective? One option is the reduction of domestic support for agriculture in developed countries, such as subsidizing the farmers themselves. If we choose such a measure, how can we enforce it without infringing on national sovereignty? In the past 20 years, the competitive gap between developed and developing nations in the agriculture market has narrowed little. Some may say it has even widened. What systemic changes can address this once and for all? How can regional fair trade agreements be used to affect global cooperation?
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ECOFIN 31
Suggestions for Further Research First and foremost, scour through the informational overviews, articles, press releases, official documents, and data available at the websites of the following organizations. The WTO and the FAO both provide highly informative and comprehensive websites detailing the history and policies of trade and agriculture since the birth of the UN. * *
*
ECOFIN: www.un.org/en/ga/second/ World Trade Organization: www.wto.org o Especially the Agricultural Committee: http://www.wto.org/english/tratop_e/agric_e/agric_e.htm Food and Agriculture Organization of the United Nations: www.fao.org
A few other relevant organizations, which are listed as observers in the Agricultural Committee of the WTO, are listed below. * * * *
* * *
International Grains Council: www.igc.int International Monetary Fund: www.imf.org Inter-American Institute for Cooperation on Agriculture: www.iica.int Organization for Economic Cooperation and Development: www.oecd.org United Nations Conference on Trade and Development: www.unctad .org ! World Food Programme: www.wfp.org World Bank: www.worldbank.org
Furthermore, I suggest you look into circumstances specific to your country. For example, there is a high chance that it is a partner in one or more free trade agreements, and it would benefit you to understand how your country deals with FTAs, as each agreement is different. Of course, if your country is a part of a larger trade group, such as the European Union or the Association of Southeast Asian Nations, understanding their trade policies will also help you with your bloc positions. If you have unlocked the secret of unlimited free time and are really wanting to go the extra mile, Food Fights Over Free Trade: How International Institutions Promote Agricultural trade Liberalization by Princeton professor Christina Davis is detailed and worthwhile, if a bit dense. Lastly, don’t hesitate to email Yanbo and Katja if you have any research questions.
ECOFIN 32 !
Role of the Committee As a main committee of the General Assembly, ECOFIN is privy to all the powers granted to the General Assembly and, perhaps more pertinently, is subject to all of its limitations. As such, its main role is to make economic and financial recommendations to member nations and especially to the Security Council. Such suggestions should be results of deliberations conducted during sessions of the General Assembly. ECOFIN may also authorize studies pursuant to its goals, which may then augment discussion or be published. Hence, as a body of the GA, its main duty is to gather information, attempt to reach a consensus regarding a course of action, and recommend said course of action to member states or the Security Council for them to execute.36 Specifically, ECOFIN must deal with issues and conflicts relating to global economic growth and development, which are many in today’s swiftly changing economy. Though this can range anywhere from information technologies to poverty eradication, in this session we focus primarily on macroeconomic issues of international trade, market globalization, and financing for development.37 As the global supply chain shifts and new markets emerge, it falls to ECOFIN to create viable strategies for a viable world economy. However, ECOFIN does not have executive power to impose economic sanctions, for example, or create binding trade agreements. Though ECOFIN itself has little control over the implementation of its strategies, the recommendations that it makes will have a lasting impact over future policies of global trade at both international and national levels.
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ECOFIN 33 !
Structure of the Committee As a body of the General Assembly, ECOFIN comprises all 193 member states of the UN. Each member state has one vote, and each important decision (read resolution) requires a two-thirds majority vote to pass. On the other hand, decisions such as changing the topic of discussion or adding other categories of topics to be discussed require only a simple majority.38 In the real ECOFIN, a chairman, as well as a vicechair for each regional group of delegations and one rapporteur, is informally elected from among the delegates for each session.39 However, at YMUN the chairmen are yours truly, Yale College students who are appointed by our YMUN supervisors as they please.
Position Papers To better prepare yourself for committee sessions, we ask that you write a 1-2 page position paper for each topic (two position papers in total). To do so you will need to research information on the topics using this topic guide and other sources, as well as the position of the country that you will be representing. If you wish to be eligible for YMUN awards, your position papers must be turned in by the first committee session. If you would like to receive feedback on your positions papers prior to the committee session, you must turn them in by January 9.
Please also make sure you are registered on the delegate forum, your advisors should provide you with a sign up ink. For the latest information, updates, topic guides and more, visit Yale Model United Nations online at: http://ymun.yira.org For the second year, YMUN will be offering a competitive essay competition. For the rules and guidelines visit: http://ymun.yira.org/essay-contest/ Interested in participating in a challenging new program for highly motivated and exceptional delegates? Apply for the Global Exchange Program at: http://ymun.yira.org/global-exchange/ Get connected and download the new Yale Model United Nations iPhone application: https://itunes.apple.com/tc/app/yale-model-unitednations/id721125366?mt=8 or search for Yale Model UN
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ECOFIN 34 !
NOTES ! 1
Peter Stearns, Consumerism in World History: The Global Transformation of Desire (London: Routledge, 2001). 2
Deirdre Pirro, “Take It Without a Pinch of Salt: Tales of Tuscan Bread,” The Florentine, May 18, 2006, accessed August 11, 2013, http://www.theflorentine.net/articles/article-view.asp?issuetocId=18. 3
“The Tea Act,” USHistory.org, accessed August 11, 2013, http://www.ushistory.org/declaration/related/teaact.htm. 4
Bruce Bartlett, “The Truth about Trade in History,” Cato Institute, July 1, 1998, accessed August 11, 2013, http://www.cato.org/publications/commentary/truth-about-trade-history. 5
Ibid.
6
“The GATT Years: From Havana to Marrakesh,” World Trade Organization, accessed August 11, 2013, http://www.wto.org/english/thewto_e/whatis_e/tif_e/fact4_e.htm. 7
“The Case for Open Trade,” World Trade Organization, accessed August 11, 2013, http://www.wto.org/english/thewto_e/whatis_e/tif_e/fact3_e.htm. 8
“The GATT Years.”
9
“The Uruguay Round,” World Trade Organization, accessed August 11, 2013, http://www.wto.org/english/thewto_e/whatis_e/tif_e/fact5_e.htm. 10
“Agriculture: Fairer Markets for Farmers,” World Trade Organization, accessed August 11, 2013, http://www.wto.org/english/thewto_e/whatis_e/tif_e/agrm3_e.htm. 11
Ibid.
12
“Subsidies, Food Imports and Tariffs Key Issues for Developing Countries,” Food and Agriculture Organization of the UN, September 2003, accessed August 11, 2013, http://www.fao.org/english/newsroom/focus/2003/wto2.htm. 13
Ibid.
14
Ibid.
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ECOFIN 35 15
“Agriculture: Fairer Markets for Farmers.”
16
“Doha Development Agenda: Texts and Explanations,” Food and Agriculture Organization of the UN, accessed August 11, 2013, http://www.fao.org/trade/negoc_dda_en.asp. 17
Blaine Friedlander, “Trade Tariffs and Farm Subsidies Deny Health and Affluence to Developing Countries, Says Cornell Policy Expert and World Food Prize Winner,” Cornell Chronicle, January 12, 2003, accessed August 11, 2013, http://news.cornell.edu/stories/2003/01/tariffs-and-farm-subsidies-deny-health-andaffluence. 18
“Four Million Syrians Are Unable to Produce or Buy Enough Food,” Food and Agriculture Organization of the UN, July 5, 2013, accessed August 11, 2013, http://www.fao.org/news/story/en/item/179446/icode/. 19
“North American Free Trade Agreement,” Office of the US Trade Representative, accessed August 11, 2013, http://www.ustr.gov/trade-agreements/free-trade-agreements/north-american-free-trade-agreement-nafta. 20
Manuel Roig-Franzia, “A Culinary and Cultural Staple in Crisis,” The Washington Post, January 27, 2007, accessed April 24, 2013, http://www.washingtonpost.com/wpdyn/content/article/2007/01/26/AR2007012601896.html. 21
“ASEAN Free Trade Area,” Association of Southeast Asian Nations, accessed August 11, 2013, http://www.asean.org/communities/asean-economic-community/category/asean-free-trade-area-afta-council. 22
Roig-Franzia, “A Culinary and Cultural Staple.”
23
“Reviewing Biofuel Policies and Subsidies,” Food and Agriculture Organization of the UN, October 7, 2008, accessed August 11, 2013, http://www.fao.org/newsroom/en/news/2008/1000928/index.html. 24
“EU and WTO,” European Commission, accessed August 11, 2013, http://ec.europa.eu/trade/policy/eu-andwto/. 25
“Everything But Arms – Who Benefits?” European Commission, accessed August 11, 2013, http://trade.ec.europa.eu/doclib/docs/2013/april/tradoc_150983.pdf. 26
Damian Carrington, “UK Farming Subsidies Shortchange the Public, Study Says,” The Guardian, July 4, 2013, accessed August 11, 2013, http://www.theguardian.com/environment/2013/jul/04/uk-farming-subsidiesshortchange-public. 27
Ousmane Badiane, “Agricultural Trade Liberalization Under Doha: The Risk Facing African Countries (DSGD Discussion Paper No. 39),” International Food Policy Research Institute, September 2006. 28
“Agriculture and Food Security Division,” African Union, accessed August 11, 2013, http://rea.au.int/en/division/AFSD.
ECOFIN 36 ! 29
Jason Clay, “Are Agricultural Subsidies Causing More Harm Than Good?” The Guardian, August 8, 2013, accessed August 11, 2013, http://www.theguardian.com/sustainable-business/agricultural-subsidies-reformgovernment-support. 30
“China – Trade,” United States Department of Agriculture, accessed August 11, 2013, http://www.ers.usda.gov/topics/international-markets-trade/countries-regions/china/trade.aspx. 31
“ASEAN Ministerial Meeting on Agriculture and Forestry,” Association of Southeast Asian Nations, accessed August 11, 2013, http://www.asean.org/communities/asean-economic-community/category/asean-ministerialmeeting-on-agriculture-and-forestry-amaf. 32
“North American Free Trade Agreement.”
33
“Pros and Cons of NAFTA,” Investopedia, December 21, 2012, accessed August 11, 2013, http://www.investopedia.com/financial-edge/1212/pros-and-cons-of-nafta.aspx. 34
Clay, “Are Agricultural Subsidies.”
35
“U.S. Agricultural Trade Policy,” United States Department of Agriculture, accessed August 11, 2013, http://www.fas.usda.gov/itp/policy/whatis.asp. 36
“Article 13”, Charter of the United Nations, accessed August 7, 2013, http://www.un.org/en/documents/charter/chapter4.shtml. 37
“Second Committee – Economic and Financial”, General Assembly of the United Nations, accessed August 7, 2013, http://www.un.org/en/ga/second/index.shtml. 38
“Article 13.”
39
“Second Committee Elects Bureau For Sixty-Seventh General Assembly Session”, U.N. General Assembly, 66th Session, Second Committee, 41st Meeting, September 4, 2012, accessed August 11, 2013, http://www.un.org/News/Press/docs/2012/gaef3333.doc.htm. [1] Baer, Werner. "Import Substitution and Industrialization in Latin America: Experiences and Interpretations." Latin American Studies Association 4.1 (1972): 95-122. Print. [2] Ross, Michael L. "Political Economy of the Resource Curse." World Politics 51.02 (1999): 297-322. Print. [3] Halsall, Paul . "Internet History Sourcebook: Summary of Wallerstein on World System Theory ." FORDHAM.EDU. http://www.fordham.edu/halsall/mod/Wallerstein.asp (accessed August 20, 2013). [4] Khun, Alex . "Critical Review of Modernisation Theory." Inform Educate Action.
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