Globalization and world trade : the indian dimension / edited by T.N. Dhar

The world is changing fast. As a country of continental dimensions, where one sixth of the humanity lives, we have to respond to change both with prudence and alacrity. In the international scene many inequities subsist. These are economic, social and technological in nature. Many institutional arrangements have been put in place to address these issues. The UN and its various arms are concerned with them. WTO is one of the important fora where problems of international trading and need for workable and equitous arrangements are discussed, negotiated and thought through. GATT worked for decades, often to the disadvantage of poor and developing countries. Then came WTO in 1994, and the spate of confabulations, discussion rounds and ministerial conferences. Ostensibly WTO is looking for transparency, equity and pragmatism in international trading regimes. The ground reality is quite different. Economic liberalization and rapid technological changes have given rise to the phenomenon of globalisation. This has added more complexity to international trading and felt need for what is called 'trade integration."

Many agree that rich nations must "reduce tariffs, subsidies and other barriers that undermine developing countries' efforts to compete in global markets." The World Bank says developed countries' agricultural subsidies amount to $300 billion a year which is five times what they provide to developing countries in foreign aid. It is such issues that are sought to be addressed in this book. From Marrakash (1994) to Doha (2001) has been a long journey. There have been some achievements but far more remains to be done.

To meet the challenges of globalisation we need vision, strategy and good governance. The thrusts of economic policy must be directed towards a more competitive but level-field oriented environment, towards improved productivity and efficiency, towards institutional innovations and flexible tariff regimes, towards transparence, towards modified labour laws and, finally, towards ensuring that the interests of farmers and small industries are protected and benefits of economic development percolate to the poor in the country.