This was the vision, analysis, and program of action forged by Raul Prebisch, an Argentine economist who, from his base at the United Economic Commission for Latin America (CEPAL), won a global following with his numerous writings. Kamal Malhotra The TRIPs regime takes the side of the latter and makes the process of industrialization by imitation much more difficult from hereon. In Thailand, local authorities agreed to remove all limitations on foreign ownership of Thai financial firms, accelerate the privatization of state enterprises, and revise bankruptcy laws along lines demanded by the country's foreign creditors. The problems of the Bretton Woods system were dealt with by the IMF, the G10 plus Switzerland, and by US monetary authorities. Rather than seriously promoting a mechanism to advance free trade, the two superpowers resorted to the rhetoric of free trade to regulate a condition of monopolistic competition, with each seeking advantage at the margins. GATT and WTO. The emergence of scores of newly independent states took place in the politically charged atmosphere of the Cold War, but although they were often split between East and West in their political alliances, Third World countries gravitated toward an economic agenda that had two underlying thrusts: rapid development and a global redistribution of wealth. "South Decries Moves to Close UNCTAD, UNIDO," Third World Resurgence, No. Damit droht genau jene Art von wirtschaftlichem Großkonflikt, den das Bretton-Woods-System verhindern sollte. Nassau Adams, "The UN's Neglected Brief-'The Advancement of All Peoples'", in Erskine Childers, Challenges to the UN (New York: St. Martin's Press), p. 31. Of course, the ideologues of the North will shout that this is tantamount to "anarchy." Instead, the Fund was deeply involved in stabilizing Third World economies with balance of payments difficulties. But no votes. "21 As for the Southeast Asian countries, Washington's assessment was that while they might have liberalized their capital accounts and financial sectors, they remained highly protected when it came to trade and were dangerously flirting with "trade distorting" exercises in industrial policy, like Malaysia's national car project, the Proton Saga, or Indonesia's drive to set up a passenger aircraft industry. The way that the consensus rule assures the hegemony of the North was recently on display in the selection of the successor to Renato Ruggiero as director general. As it is the designated authority for promoting coherence within the UN system and wider, the CEB serves as the main instrument for executive heads to coordinate their actions and policies. FOCUS-on-Trade is produced by Focus on the Global South (FOCUS) 1, No. The key agreements to come out of the first and second ministerials of the WTO — the decision to liberalize information technology trade taken Singapore in 1996 and the agreement to liberalize trade in electronic commerce arrived at in Geneva in 1998 — were all decided on in informal back-room sessions and simply presented to the full assembly as faits accompli. The original Bretton Woods agreement also included plans for an International Trade Organisation (ITO) but these lay dormant until the World Trade Organisation (WTO) was created in the early 1990s. It was believed that LIEO is conducive for peace (14 points of Woodrow Wilson, golden arches theory). By the early 1960s, the U.S. dollar's fixed value against gold, under the Bretton Woods system of fixed exchange rates, was seen as overvalued. But these are concessions that benefit mainly organized lobbies of cash-crop exporters and processors, such as Malaysian palm-oil plantations, big cocoa and coffee planters in Africa and Asia, and big sugar interests in the Caribbean. Ranee Hassarungsee The likely outcome is for a Southern manufacturer simply to pay royalties for a technology rather than to innovate, thus perpetuating the technological dependence on Northern firms. The 1944 Bretton Woods Conference, which created the International Monetary Fund and the International Bank for Reconstruction and Development, was a major landmark in international cooperation. Bretton Woods established an international monetary system of fixed exchange rates pegged to dollar which was roughly pegged to gold known as gold exchange standard i.e. 1  Second was a global program aimed at ending poverty via a program that sought to sidestep the difficult problems associated with social reform by focusing aid on improving the "productivity of the poor." Yet it is the farmers of these countries of the South that will be forced to bear the burden of adjustment to the new agricultural regime since their lack of subsidies is paralleled by their clear commitments to give greater market access to Northern farming interests, whose runaway subsidization continues to push them to create mountains of commodities seeking export outlets. We must open new markets to support the increasingly productive US agricultural sector."50. But the liberal McNamara, who was now faulted by the right for losing Vietnam and failing to contain the Southern challenge, was replaced by a more pliable successor, and ideological right-wingers seeking the closure of the Bank were restrained by pragmatic conservatives who wished to use the Bank instead as a disciplinary mechanism. UNCTAD continues to survive, but the truth of the matter is that it has been rendered impotent by the WTO, which came into being following the signing of the Marrakech Accord in April 1994, which put in force the agreements concluded during the eight-year Uruguay Round of the General Agreement on Tariffs and Trade (GATT). The solution to this condition of subsidized overproduction, said EU Agriculture Minster Franz Fischler, was intensified efforts to exports grain.49 Continuing subsidization has also deepened US agriculture's dependence on massive exporting. The Bretton Woods system gave nations more flexibility than strict adherence to the gold standard. And when any company in the NICs and Third World wishes to innovate, say in chip design, software programming, or computer assembly, it necessarily has to integrate several patented designs and processes, most of them from US electronic hardware and software giants like Microsoft, Intel, and Texas Instruments.33 As the Koreans have bitterly learned, exorbitant multiple royalty payments to what has been called the American "high tech mafia" keeps one's profit margins very low while reducing incentives for local innovation. Nicola Bullard However, USA established the order because USA’s prosperity is dependent on free trade. Indeed, the oil cartel was feared as the precursor of a unified Southern bloc controlling most strategic commodities, and right-wing propagandists would point to the Algiers Declaration of the Non-Aligned Movement in 1973 in their efforts to fan fear and loathing in the North:13, "The Heads of State or Government recommend the establishment of effective solidarity organizations for the defense of the raw materials producing countries such as the Organization of Petroleum Export Countries ... to recover natural resources and ensure increasingly substantial export earnings. In May 1971, West Germany left the Bretton woods system. Indeed, the WTO, with its enshrinement of the principle of free trade as the organizing principle of the global trading system, represents the defeat of everything that the South fought for in UNCTAD: getting fair prices for their commodities via commodity price agreements; the institutionalization of trade preferences for Southern goods owing to their underdeveloped status; preferential treatment for local investors; the use of trade policy as a legitimate instrument for industrialization; and more concerted technology transfer to the South. Here practically all the economic systems displayed the same features of state-assisted capitalism found elsewhere in the South: an activist government intervening in key areas of the economy, a focus on industrialization in order to escape the fate of being simply agricultural or raw material producers, protection of the domestic market from foreign competition, and tight controls on foreign investment. "17 As for Latin America, one analyst noted that the U.S. took advantage of "this period of financial strain to insist that debtor countries remove the government from the economy as the price of getting credit. What unfolded over the next four years was a two-pronged strategy aimed, on the one hand, at dismantling the system of "state-assisted capitalism" that was seen as the domestic base for Southern national capitalist elites and, on the other, drastically weakening the United Nations system as a forum and instrument for the South's economic agenda. Minar Pimple The Bretton Woods system established a(n) a. international system without colonies. Further liberalization in a new round of negotiations will simply drive the region's small farmers over the edge, as it will small farmers in other parts of the South. They enabled the NICs to raise income from capital-intensive exports, develop support industries, bring in technology, while still protecting local entrepreneurs' preferential access to the domestic market. The Iron Cage: The WTO, the Bretton Woods Institutions, and the South. But, as it did at the World Bank and the IMF, the North evolved other mechanisms of control. Most important of these was the Cold War. There was one area of the South that was relatively untouched by the first phase of the Northern economic counterrevolution. US political and economic dominance necessitated the dollar being at the centre of the system. The Bretton Woods system was drawn up and fixed the dollar to gold at the existing parity of US$35 per ounce, while all other currencies had fixed, but adjustable, exchange rates to the dollar. It is against this dismal background that we now to move to the question of reform. Bretton Woods-GATT, 1941–1947. National treatment, which is institutionalized in the General Agreement on Trade in Services (GATS) of the Uruguay Round, is perhaps the most revolutionary of these principles and the most threatening to the South for it gives foreign service providers, from telecommunications companies to lawyers to educational agencies, the same rights and privileges as their domestic counterparts. Export subsidies would be reduced over a six-year-period by 21 percent in volume terms and by 36 percent in terms of total cash value, and members would not agree to expand subsidies beyond the level reached at the end of six-year period. The idea behind the set-aside program is to restrict output, thus raising prices. %PDF-1.5 Because it strengthens considerably the system of private patenting of intellectual property, TRIPs has opened the way for the privatization of products developed from genetic processes or communal technological innovation in the South. 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