Dr. Stiglitz, LDCs and Cancun
Ummee Saila, Dhaka
Dr. Joseph E Stiglitz currently paid a four-day visit to Bangladesh at the invitation of BIISS ( Bangladesh Institute of International and Strategic Studies). His statements about the LDCs (Least Developed Countries) portray the true picture of their present condition. His advice to the LDCs to create unity among themselves is very timely for facing the emerging challenge. LDCs should take a common position to demand in the fifth ministerial meeting the duty and quota free access to the market of the developed world. All the ministers of 14 member countries of WTO will meet in Cancun, Mexico from 10 to 14 September. Ministers of 49 LDCs are going to place their unanimous demand through "Dhaka Declaration". The 16-point Dhaka Declaration includes 13 demands. The significant demands are: quota and duty free access in the market of developed countries, assuring free mobility of the unskilled and semi skilled labourers of LDCs to the developed countries, increasing technical assistance, decreasing agricultural subsidy of the developed countries, changing anti-dumping policy etc.Dr. Stiglitz said the success of the LDCs in WTO negotiation in Cancun would depend on their unity and negotiating capabilities. Stiglitz, a former chief economist and Vice President of World Bank (WB) won Noble Prize in 2001. Stiglitz suggested LDCs to follow the strategy "you give up some thing, I give up something, on the equal value, should be based on the issue of the tariff and non tariff negotiation." Top five rich countries of the world are involved in 82 per cent of export. On the other, hand 49 LDCs contribute only 0.4 per cent of world export. The European Union gives subsidy of $2 per day for each cow whereas a citizen of LDC hardly earns $ 1 a day. When the LDCs cannot ensure food for all citizens, USA is giving subsidy of $ 4 billion to 25 thousand farmers. The Economist criticised the developed countries for maintaining double standard to have their interest served. The renowned journal said the LDCs should be aware of the common tactics of rich nations of creating division among the LDCs. It supported the mobility of labourer as the mobility of capital. The second trade ministers meeting held in Dhaka from May 31 to June 2, 2003, concluded with Dhaka Declaration. The demand in the Dhaka Declaration has similarity with the suggestion made by Stiglitz. He criticized the US agri subsidy which would be doubled in the next 10 years. He suggested the LDCs to protest this policy together so that the developed countries change their subsidy policy. He identified 'corruption' as a major enemy deterring development of LDCs. He also suggested Bangladesh not to sell the natural gas. If we export it now we have to import after 15 or 20 years. So to ensure the successful negotiation with developed countries LDCs should unite and elect efficient and experienced person to negotiate at WTO to maximise advantage for the LDCs.
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