The Structural and Institutional Constraints Facing Developing Countries in the Global Trading System
Submitting Institution
University of ManchesterUnit of Assessment
Politics and International StudiesSummary Impact Type
PoliticalResearch Subject Area(s)
Economics: Applied Economics
Studies In Human Society: Policy and Administration, Political Science
Summary of the impact
University of Manchester (UoM) research considers the role, position and
perception of developing countries in the World Trade Organisation (WTO).
It is informed by a deep unease at the way developing and least developed
countries (LDCs) have been consistently unable to participate in the
multilateral trading system on an equitable basis, and are routinely
rendered powerless to realise the meaningful gains that the global trade
regime habitually promises. Impact is achieved through a systematic and
sustained programme of dissemination, consultation and engagement with
high level international policymakers, government officials and civil
society organisations, resulting in measurable and meaningful policy
change. In conjunction with these stakeholders, the research has: informed
the negotiating positions of several states — including South Africa,
Turkey, the Seychelles and Nigeria; shaped thinking around the future of
the global trade architecture; and contributed to a number of training
programmes, most notably at the UN.
Underpinning research
Key researchers are Professor Rorden Wilkinson (Politics, 1997-) and Dr
James Scott (Hallsworth Research Fellow, 2008-2013), with Wilkinson
seconded (2009-) to UoM's Brooks World Poverty Institute (BWPI). The case
is built upon ongoing research; the first grant (British Academy) secured
in 2003, and subsequent grants secured in 2006/2010 (Rory & Elizabeth
Brooks Foundation), 2007 (British Academy, Centre for International
Governance Innovation/Trudeau Fund), 2009 (Nuffield Foundation), 2011
(Henry Luce Foundation) and 2012 (Brooks/DTI South Africa).
This research programme systematically challenges conventional wisdom —
that the problems developing countries and LDCs face relate specifically
to the nature of their economies and polities, and/or the nature of
relations with former and quasi-former colonial states — clearly
demonstrating that developing countries are not `naysayers', `foot
draggers' or `free-riders' in multilateral trade liberalisation. It
seeks to actively inform multilateral trade negotiations, and is
designed to seek improvements in the trading prospects of developing and
least developed countries. Through sustained research, UoM expertise
is recognised by key actors within national governments, NGOs and
grassroots organisations as challenging the portrayal of developing
countries as passive participants. Instead, the research argues that these
states are not given credit for their contribution, even though they were
and are actively and constructively engaged in trade negotiations. In sum,
such countries are important agents in global trade [E].
The conventional narrative in trade circles is also challenged —
that the global trading system will collapse if developing countries do
not co-operate (the `bicycle' theory) [D]. These `discourses of crises'
put undue pressure on the least powerful states, and a major contribution
of the research has been to stress to LDCs that, in the face of a
perceived crisis, pressures to hurriedly liberalise should be resisted.
The asymmetrical outcomes of consecutive multilateral trade negotiations,
which similarly militate against developing countries and LDCs, is also
highlighted, and it is stressed that equal participation is often
impossible because of a lack of necessary resources, technical expertise
and opportunity [A][B][C].
Research was undertaken in four phases. Phase 1 examined the
legal and institutional disadvantages confronting developing countries in
WTO negotiations and their long-run effect [C]. Phase 2 explored
the role of political practices and behavioural norms in negotiations, and
the negative impact they have on the capacity of developing countries and
LDCs to participate [E]. Phase 3 examined the construction and
effects of knowledge, discourse and common sense on the negotiating
positions and behaviour of developing countries [B][D], and processes of
institutional socialisation [A]. Phase 4 is currently exploring
processes of institutional reform and ideational reconfiguration. Key
Findings from the research include:
1. As a broad group, developing countries are structurally and
institutionally disadvantaged by WTO rules, norms, negotiating practices
and decision making procedures.
2. Common sense ideas about the value of trade, the consequences
of institutional breakdown and crisis, and the means by which trade gains
are `measured', distort the negotiating positions of less able states.
3. Participation in the multilateral trade regime socialises
states into modes of behaviour that reinforce existing inequalities,
regarding both agenda setting and outcome.
4. The capacity of developing countries to effectively negotiate
is further inhibited by a lack of knowledge about the institutional and
structural inequalities they confront.
5. The most likely reforms of the WTO will at best maintain, and
at worst exacerbate, asymmetries already embedded in the multilateral
trading system.
References to the research
(all references available upon request — AUR)
Research findings have been published in leading journals in the fields
of international trade, international development and international
political economy as well as in notable edited volumes, policy working
papers, monographs and as stand-alone reports, opinion pieces and other
works.
[A] (2012) Wilkinson, R. & Scott, J. (eds.) Trade, Poverty,
Development: Getting beyond the WTO's Doha Deadlock (London:
Routledge) (AUR)
[B] (2011) Scott, J. & Wilkinson, R. "The Poverty of the Doha Round
and the Least Developed Countries" Third World Quarterly 32(4)
611-627 doi:10.1080/01436597.2011.569322
[C] (2011) Wilkinson, R. "Measuring the WTO's Performance: An Alternative
Account" Global Policy 2(1) 43-52 (REF 2014)
doi:10.1111/j.1758-5899.2010.00058.x
[D] (2009) Wilkinson, R. "Language, Power and Multilateral Trade
Negotiations" Review of International Political Economy 16(4)
597-619 (REF 2014) doi:10.1080/09692290802587734
[E] (2008) Wilkinson, R. & Scott, J. "Developing Country
Participation in the GATT: A Reassessment" World Trade Review 7(3)
(REF 2014) 473-501 doi:10.1017/S1474745608003959
Details of the impact
Context: Concurrent with ongoing multilateral trade negotiations
(2001-), UoM research has sought to target and maximise impact through the
building of extended and sustained relationships with actors in the WTO
(ambassadors, lawyers and knowledge brokers), national governments
(specifically South Africa, Turkey, The Seychelles and Bangladesh), and
international and national civil society organisations. The impacts
from this research are threefold:
- Informing the negotiating positions of actors within the global trade
architecture
- Contributing to the future shaping of the global trade architecture
- Shaping participant and policymaker training programmes
Informing negotiating positions: Wilkinson and colleagues have
systematically disseminated their research within a range of international
fora, with findings presented to all of the WTO's high level
ministerial conferences since 2003. In 2011 a document prepared by
Wilkinson — `Four Principles for Reforming the WTO' — was circulated by
the knowledge broker the International Centre for Trade and Sustainable
Development (ICTSD) to all trade delegates (c.2000), including attending
trade ministers, and also translated into Swedish [1]. As the Chief
Executive of ICTSD attests: "findings have been picked up directly by
trade actors, with the research effectively transforming insights,
narratives and bargaining tools for developing countries in the WTO.
Professor Wilkinson's contributions to the work of ICTSD have been
crucial... contributing to our ongoing work on the importance of
sustainable development within the international trade system" [2].
Wilkinson has advised a significant number of governments at the highest
levels. Prominent examples include South Africa, the Seychelles, Turkey
and Bangladesh.
South Africa: Wilkinson has built a sustained, high-trust
relationship with South African trade negotiators, offering advice on an ad
hoc basis since 2009. The country's Ambassador, and Permanent
Representative to the WTO, cites the value of publication [E] in his
existing [3] and ongoing work, noting that: "I have also served as the
WTO Chair of the Committee of Trade and Development... In this capacity,
and as an active participant in several developing country coalitions
and alliances, I have sought out researchers and writers that could
assist me in the work I was doing to advance the interests of developing
countries in the WTO... My association and collaboration with Professor
Rorden Wilkinson enhanced my capacity to engage more effectively in all
of these roles... Evidence of the influence of Rorden's work on the
negotiations can be seen in at least two WTO proposals that I
co-authored on behalf of developing countries in the WTO... I have also
had the chance to comment on his work... [where] I pay tribute
to Rorden's research and analytical work, and in particular the value
this has for practitioners, such as myself" [4].
Seychelles: In the period 2007-09 Wilkinson was Special Advisor to
the Vice President and Minister of Finance on WTO accession. As the Former
Director General of Trade testifies, Wilkinson both assisted in brokering
relationships between Seychelles officials and WTO actors, and "his
research on `asymmetries' was usefully translated into concrete advice
concerning which specific aspects of trade should be open to
liberalisation, and which should be protected as a part of the country's
WTO accession package... Subsequent to these discussions, the Seychelles
proceeded with re-engaging the WTO in respect of Seychelles' application
of accession but adjusted its offers to the Membership in light of the
advice that Professor Wilkinson provided" [5]. Correspondingly, the
country's Minister of Foreign Affairs points to longer term aspects: "Professor
Wilkinson's work has been particularly important, as at the present time
there is a notable lack of rigorous academic work that underscores both
the vulnerability of the Seychelles economy to fluctuations in external
demand... and the special features of the Seychelles economy, which
require specific policy recommendations... Professor Wilkinson has
provided useful advice over a period of time [1999-2011] that greatly
assisted our negotiating position. Seychelles has built a credible offer
for WTO accession... Wilkinson's advice has contributed to this"
[6].
Turkey: In 2007, the Turkish government invited Wilkinson to
contribute a paper to a government sponsored event on foreign trade; the
brief was to come up with `new ideas on trade'. The paper — highlighting
institutional asymmetries in international trade; and the role of language
in constructing false representations of developing countries and shaping
their behaviour in international trade — was subsequently published in the
Undersecretariat's official journal (Vol.3:1, 2009) as `The Problematic of
Trade and Development Beyond the Doha Round', and reported on the major
Turkish trade blog dtm.gov. As the conference organiser confirms:
"The event was very successful... [and] attended by high ranking
bureaucrats of the Undersecretariat for Foreign Trade as well as by
practitioners of foreign trade... Wilkinson's contribution made a
constructive contribution to ongoing debates within a Turkish context on
the Doha round... and the work continues to be important as revealed by
the comments... from the Undersecretariat" [7].
Bangladesh: Wilkinson has been appointed expert advisor to two
high level working groups, `LDC IV Monitor' and `Future of the UN
Development System'. The former (a non-official UN sanctioned group) is
facilitated through collaboration between the Commonwealth Secretariat,
OECD Development Centre and the Centre for Policy Dialogue in Bangladesh.
The Chair of LDC IV Monitor confirms that: "Wilkinson's expertise has
been valuable in shaping the structure and content of the upcoming
biennial report of the Monitor. His comments and observations have
enabled us to significantly improve the key messages... [and] The
chapters on Trade and Millennium Development Goals (MDGs) also benefited
greatly from his critical inputs... Wilkinson has helped us to connect
to the frontier issues concerning the development challenges currently
confronted by the LDCs. Professor Wilkinson's work remains vital, as he
continues to remain engaged with the LDC IV Monitor" [8].
Rethinking global trade architecture: In order to enhance the
hands-on policy engagement documented above, debates concerning the
contours of global trade have been nurtured. Wilkinson's dissemination and
consulting activities, via a network of high level contacts across a range
of states and organisations, were mobilised within the inaugural Global
Poverty Summit in South Africa (16-19/1/2011). This event, initiated,
co-ordinated and convened by Wilkinson, brought together 50 of the world's
leading poverty thinkers (including former heads of state, serving
ministers, country ambassadors, iconic and Nobel Prize winning
intellectuals, leading academics, heads of international NGOs, and
secretaries-general, under secretaries-general and assistant
secretaries-general of UN Institutions). The purpose of the event was to
influence progress in two international public policy initiatives — the
Millennium Development Goals and the WTO's Doha Development Agenda — as
well as engage in public debate. At the conclusion of the summit, two
major international declarations were agreed and produced by participants
on `Africa and the Doha Development Agenda' and `Africa and the Millennium
Development Goals'. The Deputy Director General of the WTO (also Nigeria's
Ambassador and Permanent Representative) substantiates the value of this
event, and Wilkinson's contributions to WTO ministerial fora
(2003-2011), stating that: "I have found Professor Wilkinson's work
particularly helpful in the shaping of the global trade agenda, with
respect to the interaction between trade policy, trade negotiations,
sustainable development and poverty reduction... Wilkinson has also been
of assistance in the development of Nigeria's negotiation positions,
especially in finding the balance of commitments and the movement from
defending positions towards finding compromises... This research will
continue to be valuable in advancing meaningful discussions on various
issues under the Doha Work Programme, including the package for the Bali
Ministerial Conference (MC9)... as well as the post-Bali agenda"
[9]. The Summit was followed up by a `Commission on the Future of the
Multilateral Trading System' (Cape Town, 5/12/2012) funded by BWPI, DTI
South Africa and the World Bank.
Training Programmes: Wilkinson has disseminated his research on
institutional asymmetries in trade and the role of crisis in trade
negotiations in the UK (2006-), running training packages on `Regional
Trade Agreements (RTAs) and development policies — including `US and EC
preferential trade policies and impact on developing countries', `WTO
negotiations' and `Global Trade Regulation' — for the British Institute of
International and Comparative Law (BIICL), Advocates for International
Development (A4ID — who offer pro bono support to developing
countries in trade negotiations) and for the International Trade Division
of the Department for International Development (DfID). Many of these
sessions have been recorded for future use and wider dissemination.
Wilkinson also enjoyed a key role within the UN Summer Academy programme;
2012 (Turin) and 2013 (New York). In 2013, Wilkinson contributed a keynote
lecture on UN Reform — `Global Governance and the United Nations:
Understanding the UN in a Rapidly Changing World' — in an all-day session.
The course co-ordinator verifies that "Wilkinson's in-depth knowledge
and passion for the topic provoked vital discussions on the key
challenges of global governance... [and] really set the tone and
the high pace of the successful event... The contribution of academics
such as Professor Wilkinson is vital in that it provides an outside
perspective to UN staff members... Wilkinson's contribution was very
effective, particularly in highlighting critical considerations of
global governance which set the environment for informed decisions on
the role of the United Nations in this rapidly changing world... he has
demonstrated himself as one of only a few academics with real insight
and knowledge in both global governance, and the UN as an important
multilateral organisation" [10].
Sources to corroborate the impact
(all claims referenced in the text)
[1] Wilkinson, R. `Four Principles for Reforming the WTO' ICTSD
(December) & `Fyra principer för reformering av WTO' (Global
Publications Foundation)
[2] Testimonial from Chief Executive, International Centre for Trade and
Sustainable Development (3rd October 2013)
[3] (2009) Ismail, F. `Reforming the World Trade Organization: Developing
Countries in the Doha Round', CUTS International
[4] Testimonial from South African Permanent Representative to the WTO
(30th July 2013)
[5] (2013) Letter to Prof Wilkinson from former Director General of
Trade, Ministry of Finance, Trade and Investment, Republic of Seychelles
(5th September)
[6] Testimonial from Minister of Foreign Affairs, Republic of Seychelles
(5th August 2013)
[7] (2013) Letter to Prof Wilkinson from Director, Center for
International Economics, Bilkent University (18th August)
[8] Testimonial from former Bangladeshi Ambassador to the WTO (12th
September 2013)
[9] Testimonial from Deputy Director General, WTO (5th August
2013)
[10] (2013) Letter to Prof Wilkinson from Senior Manager and Course
Coordinator, Development and Human Rights Team, United Nations System
Staff College (5th September)