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| Economic & Finance A & B -
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- Free Trade with a Focus on the Doha Development Round
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Topic 1: Free Trade with a Focus on the Doha Development Round
In a modern world where communications span the width of the globe, the natural evolution of communications is assumed to be international free trade. However, this goal is blocked by walls of tariffs that separate nations and limit economies. The United Nations realizes the importance of free trade, but also the many dangers of the immediate unlocking of nations’ economies. It is deeply depressing, that many nations will suffer because of the integration of economies.
To combat the possible mishaps, the World Trade Organization (WTO) handles many issues that are related to global trade. WTO advocates claim the “organization is responsible for agreements that offer the best means for providing lower prices for consumers across a wide array of products while creating fairer competitive conditions for international supplier” (Encyclopedia Britannica Vol. 11). However, opposes of the WTO argue that the organization is responsible for infringing on national sovereignty, promoting the interests of large corporations, and ignoring environmental issues” (Encyclopedia Britannica Vol. 11).
Despite the controversy, the WTO and members fathered the Doha Development Round, named for its start in Doha, Qatar. The Doha Development Round’s goal is to negotiate solutions so as to illuminate trade barriers around the world, thus permitting trade in all developing and developed nations. The Round also boosts a creed meant to “pay special attention to developing nations, while respecting developed nations” (The Doha Development Website).
Since its first meeting in November of 2001, the Doha Development Round has been aiming for the completion of the Doha Development Agenda, which is made up of issues that are to be discussed by the Round in hopes of an elevated level of globalization. After five meetings spanning over five long years, minimal amounts of progress have been made. Few imperative topics have been decided amongst the members, such limited topics include agreements on rural development aid, simplified customs, and requirements for industrialized nations to welcome goods from the world’s poorest nations’ into their markets. Despite the success of the few decisions, the Doha Development Round faces a large foe known as the North and South schism. This break in international foreign affairs is defined by developed nations on the ‘North’ side and developing nations on the ‘South’ Side. The schism indisputably affects the progress of the Round halting agreements and decisions.
The Round has received global criticism concerning the truthfulness of the developed nations. Multiple critics believe developed nations aspire only to open developing nations’ markets so as to drain their resources while withholding their own markets. A noted detractor of the Round the Carnegie Endowment for International Peace has published numerous papers concerning the effect of the Doha Development Agenda on developing nations, developed nations, and the globe as a whole. The non-profit organization argues that the initiation of the Agenda will result in little change in the world’s market, but will not benefit developing nations as promised by the Round.
For the Doha Development Round and its supporters, 2007 may present more problems for the continuation of the Round negotiations. After July 1, 2007, the President of the United States will no longer be able to create trade agreements without the support and editing of the country’s Congress. This prospect will probably cause many nations to leave negotiations, possibly resulting in the Round’s demise. Despite the potential bleak future, WTO director general Pascal Lamy believes that the time is prime for a favorable conclusion of the Round.
Questions:
- How or should the UN interfere with the proceedings of the Doha Development Round?
- Should the UN participate in the negotiations?
- How or should the UN protect the parties involved in the Round?
- How should the UN prepare for the possible success of the Doha Development Agenda?
- Should the purpose of the WTO be revaluated?
Works Cited:
Encyclopedia Britannica Vol.4, 21, 6, 27, 11, 15th Edition, 2007 http://www.wto.org/english/tratop_e/dda_e/dda_e.htm, The Doha Development Round Agenda,
World Trade Organization Website
http://www.wto.org/index.htm , The World Trade Organization
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Topic 2: UN involvement with the World Food Programme
At the Millennium Summit in 2000, an unprecedented amount of world leaders adopted eight goals, the UN Millennium Development Goals (MDGs), to which each participating nation would commit their country in order to foster an international community that hoped to accomplish such targets by 2015. These goals were the world's first diplomatic time-bound and quantified targets whereby the nations of the world would band together to eradicate extreme poverty, provide adequate and sustainable forms of shelter, and ensure an education to every human in every country, among others. The First Millennium Development goal targets the issue of poverty, and outlines two ways in which the eradication of such a state can be ensured. The first target aims to halve the number of people living on less than one US dollar a day; the second aims to halve the number of people suffering from extreme malnutrition due to chronic hunger.
The World Food Programme is the single largest humanitarian agency in the world, dedicated to eradicating hunger. It receives public and private funding, as well as funding from a myriad of UN member state countries. The Programme reaches almost 80 countries and provides food for nearly 90 million unreachable children and adults worldwide. However, private and public funding toward the WFP's projects is not mandatory, and comes on the basis of however much is donated. With an unavailability of permanent, non-negotiable funding, the WFP runs the risk of unexpectedly losing donations from some of its most important supporters.
The Programme primarily deals in areas of need, some of those being Chad, the Democratic Republic of Congo, Kenya, Occupied Palestine, Sudan, and Afghanistan. In many of their projects, lack of funding effects the efficiency of the WFP's work. In Afghanistan, the WFP has only hit 40 percent of targeted victims of drought and political unrest, and so far have only received 14 percent of the WFP's appeal for funds in 2007 (see WFP website). Fuel prices and internal insecurity have been only some of the barriers keeping the WFP out of the impoverished areas, and other dangerous setbacks have occurred since its implementation as a UN body. While monetary donations from UN member states make up a huge portion of the current funding, the WFP is an unreachable commodity for many others in need. Political instability, climate and regional weather problems, as well as lack of usable labor resources are keeping a dedicated and much needed program away from those who need it most.
Questions:
- Should the UN redirect funds to the WFP to help quell world hunger on a broader scale?
- How can the UN bring more funds to the table in order to exceed its present monetary aid designated for the WFP?
- Should the WFP be the central body targeting world hunger?
- In what ways can the UN encourage the WFP to work in tandem with the WHO to combat world hunger?
Works Cited:
The UN World Food Programme: http://www.wfp.org
Friends of the WFP: http://www.friendsofwfp.org
Fight Hunger: http://www.fighthunger.org
World Food Programme: Report of the Fourteenth Session of the UN/FAO Committee on Food Aid Policies and Programs
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Topic 3: The Black Market
The Black Market is a problem plaguing the economies of virtually every nation across the globe. The illicit drug trade in particular is one of many problems that must be dealt with efficiently and comprehensively without critically affecting the sovereignty of nations.
Currently, ninety-nine percent of all profits from illicit drug trafficking subsequently falls back into the trafficking system. Many nations rely greatly on the profit obtained from drug trafficking and corrupt governments do not oppose such illegal behavior (Palmer). Middle Eastern countries, such as Afghanistan, are responsible for the majority of opium supplanted throughout the world; however, the opium trade strengthens the volatile economy of such a poor nation so as they can freely enter the global market and become a recognizable entity in the free trade system (World Drug Report). Almost ninety percent of all heroin consumed in Europe is derived from opium crops that have been illegally transported over borders from the Middle East, and this behavior is not succumb to any government intervention in those countries in which it thrives (World Drug Report).
The illegal market for firearms and other such weapons threatens global peace and unity. Countries under totalitarian rule are pursuing nuclear weapons technologies that could potentially harm the international community on a severe scale (Taubman). Many of the nations pursuing such actions are incapable of providing themselves with the necessary materials needed to create massive weapons, and rely on allied trading partners to illegally transport materials against the Non-Proliferation Treaty (India’s processed…). The benefits of nuclear weapons technology will not likely be seen until after illegal activities have commenced under the watchful eyes of the UN and the incumbent governments.
Although many of the illicit activities around the globe are recognized by governments, some of the activity is vastly irreversible without forceful intervention (World Drug Report). What lies at stake is the autonomy of many Third World countries that rely on the illegal transports for a large percent of their GDP, but liberty and government should not be at its expense.
Questions:
- How can the UN work to quell the problems that evolve from black markets?
- How can the UN help aid those countries that depend on illicit transportation of goods for stimulation of the economy?
- What kinds of financial aid can the UN offer to needy countries?
- With which bodies of the UN can Eco-Fin work as partners to stop trafficking, and how can autonomous economies be fostered by the UN?
Works Cited:
“India's processed uranium reportedly makes way to black market – Pakistan.” BBC
Monitoring South Asia. Wire Feed. London: 27 Feb, 2007.
Palmer, Doug. “Uribe Lobbies US Policy Makers on Aid, Trade Deal.” The Washington
Post. 2 May, 2007.
Taubman, Philip. “Black Market in Arms: Strictly Cash and Carry.” New York Times: 21
` March, 1982.
World Drug Report. Office on Drugs and Crime. : UNDOC, 2006.
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