Relevant
Mordechai Kreinin
and Michael Plummer, “Introduction and summary,” in Economic Integration and
Development: Has Regionalism Delivered for Developing Countries? (
Dani Rodrik,
“Trading in Illusions,” Foreign Policy (March/April 2001), pp. 54-62.
This article contained two main arguments:
It is unethical to divert resources for trade/economic liberalization
when resources are better used to help pressing domestic problems.
Trade/economic liberalization does
not necessarily contribute to development.
(Textual
quotes supplied by Omid.)
Notes:
Questions on Illusions
1) Is the author paternalistic when describing the
interests of the lesser-developed? Or, is it true that we have to watch out for
these countries?
2) Are there cases where institutions spurred cooperation
and development, counter to the argument in this article?
Regionalism has not, so far, kept its promises for
developing countries. Why?
-Discrimination, i.e., exclusive regionalizing schemes
that artificially or protectively reduce outward trade.
-Developing countries need to be more active in the
negotiation process in WTO, to secure interests and influence policy makers.
-“In conclusion, regional integration between developing
countries is welfare-enhancing only if it is outward looking and minimizes
discrimination against outsiders.”
Notes:
Questions on EI&D
1) Why should developed nations reach out this way? Is it
in their interest to do so? Can they be obliged to do so?
2) What would a realist think of the basic reasoning in
this reading?