The world trade organization gives the status of developing and develo...
Introduction
The World Trade Organization (WTO) is an international organization that deals with global trade rules. One of the aspects of its work is to classify its member countries into developing and developed categories. This classification helps in determining the rights and obligations of each member country within the organization.
Developing Countries
Developing countries are those nations that have relatively low levels of industrialization, per capita income, and human development indices. The WTO provides special provisions and flexibilities to developing countries to support their economic growth and development. Some key characteristics of developing countries include:
1. Economic Criteria: The WTO considers factors such as the share of world trade, share of direct investment, and per capita income to determine if a country qualifies as a developing nation.
2. Special and Differential Treatment: Developing countries receive special and differential treatment in various WTO agreements, allowing them more time to implement certain obligations and providing technical assistance to build their capacity.
3. Market Access: Developing countries often have more favorable market access conditions, including lower tariffs and quotas, to promote their exports and enhance their integration into the global trading system.
4. Technical Assistance: The WTO provides technical assistance and capacity-building programs to help developing countries participate effectively in trade negotiations, implement WTO agreements, and address challenges related to trade.
Developed Countries
Developed countries are characterized by high levels of industrialization, per capita income, and advanced technological capabilities. They generally have greater influence in shaping global trade rules and norms. Some key features of developed countries include:
1. Greater Market Access: Developed countries often have more liberalized markets and fewer trade barriers, allowing for greater access to their markets for goods and services.
2. Binding Commitments: Developed countries are expected to make binding commitments to further liberalize their trade and remove barriers to create a more open and fair trading system.
3. Leading Role: Developed countries often play a leading role in setting the global trade agenda and influencing international trade policies.
4. Financial Contributions: Developed countries contribute financially to support technical assistance and capacity-building programs for developing countries to enhance their participation in the global trading system.
Conclusion
The classification of developing and developed countries by the WTO helps in addressing the diverse needs and challenges faced by its member nations. It allows for tailored assistance and treatment to support the growth and development of developing countries, while also recognizing the advanced capabilities and responsibilities of developed nations in shaping global trade policies.