FOR THE ATTENTION OF THE DISSUSSION MODERATOR WHO SEEKS MORE INFORMATION ON FAIR TRADE, ADVOCACY IN RESPONSE TO TAIWO OSENI'S ENTRY TITLED, "HUMAN TRAFFICKING: WESTERN WORLD'S PROMOTION OF TRADE AND ENSHRINEMENT OF POVERTY IN DEVELOPING NATIONS".
FAIR TRADE is generally about making sure poor producers get their adequate returns for what they produce. Fair trade is the extent of integrating economically with the rest of the world openness and competitiveness in the global economy.
But the reverse is the case with developing countries, they do not get adequate returns for what they produce. This is because markets are amoral: they (markets) allow people to act with their interest but they pass no moral judgement on the interest themselves. Essentially, markets are rather selfish in its features in that the right practices which back up the supply chain to the original producers of goods and services are not met by virtue of some imperialistic trade rules that do not favour developing countries. Yet the society cannot function without some distinction between right and wrong.
Developing countries are again as in the early days of UNCTAD, becoming a major focus in matters of world trade reforms vis fair. While developing countries are heavily represented in the WTO (World Trade Organisation) -accounting for about four-fifths, that is, 80 percent of its membership - there is still plenty of scope for the World Trading system to work more effectively in their (Developing countries) interests. This is not fair trade!
It is evidenced that the prospective WTO (World Trade Organisation) Millennium Round of negotiations will highlight crucial economic issues regarding the application and implementation of the WTO rules to fair and international trade in goods and services;WTO is still faced with its numerous challenges that make up for fair trade viz: state trading and state aids; regionalism; regional integration;international investment; patents; and financial services, especially to developing countries.
It is pertinent to examine some of the crucial issues that make for fair trade that the WTO is still battling in terms of challenges in its millennium Round negotiation-
REGIONALISM- Beginning in the late 1980s, regional groupings started to become very popular as a tool for commercial policy that will facilitate fair trade in the global hemisphere. The concept of regionalism is that regions benefit in the economic openness and market integration at which returns will come to producers of goods and services and there will be a commercial advantage derived in regions towards trade - goods and services. The degree of regionalism among developing countries and between developed and developing countries improve economic development prospects and economic policy.
Economic policy, with fair trade, must be grounded on an intelligent application of the limitation of theoretical constructions and the consequential impact on real human beings in society. Human beings must have positive impact of what production, return on investment(roi)and adequate financial aid to back up effective production, supply chain and distribution of their goods and services. This enhances economic developing prospect thereby eradicating poverty, the bane of human trafficking - that must be put an end to in developing countries!
STATE: STATE TRADING AND STATE AID - In the 21st century, the nation state has lost some of its insular structure in developing countries. Its decision-making power has been subjugated to the forces of political and economic liberalism -trade liberalization that is currently sweeping the global economy,
Experience suggests that trade liberalization has contributed to the remakable growth of industrialised countries in developed countries at the expense of developing countries. Trade liberalization removed the protection enjoyed by infant industries and set the developing countries back twenty years on the path to industrial development.
Trade liberalization index is measured by "real exports" and "degree of openness". Ironically,fair trade enhances openness, transparency. Wither the hullabaloo of trade liberalization by the imperialists? (G7 and Institutional frame works like IMF, the world Bank, WTO, etc) Misguided liberalization meant the collapse of industries through competition from Superior (Developing countries) and cheaper import substitutes, retrenchment of workers and creation of idle capacity.
REGIONAL INTEGRATION-
With reference to regional integration which enhances fair trade, however, for various reasons, many developing countries have not yet been able to integrate successfully into global markets and reap the growth- inducing and poverty-reducing benefits of trade - fair trade
This is because the developing countries give developing countries stiffer trade rules and policies like high tariffs, high taxes on the goods and services, currency depreciation of resource-based economies at the expense of commodity prices that the poor produces in developing countries produce not yielding them adequate or little retuns, and even unfavourable balance of payment!
A fresh perspective on balance of payments theories, including intertemporal open economy models that focus on the optimum current account in foreign exchange theories. Any non-zero balance of payments must be associated with a disequilibriumin either a commodity or an asset market. A new theory of the balance of payments associated with commodity market disequilibrium, a loanable fund theory of exchange rate and a modern foreign exchange rate that incorporates capital flows.
Human trafficking will not allow poor producers have adequate returns for what they produce (fair trade), as a result of skill shortages. Skill shortages can be a major bottleneck for economic activity and growth.
The idea behind human trafficking is that when labour surplus, advanced throughout the developed world of which children and women, who are worse hit victims of human trafficking ar transported outside their jurisdiction to go and work, especially in crop plantations like coffee, cocoa, cotton, etc., it will aid food security that the developed countries will invariably export to developing countries as food aid!
But there is a way out of human trafficking. This is via ADVOCACY. ADVOCACY is going to work in ending human trafficking in terms of me being an activist. I shall speak loudly for the fundamental cause of the poor, who do not have a voice. I shall go places via travelling - go to Legislative Houses to sponsor and pass bills against total extermination of human trafficking.
Human trafficking is not a matter of taming the shrew- let us kill it in order to safe developing nations. Let them grow in terms of ensuring that they benefit from both globalization and liberalization - these two phenomenons that have enriched and industrialized rich developed nations. Advocacy via activism - being an activist is it!
MISS. TAIWO OSENI
6, ALAFIA STREET, OPEYEMI AREA, OPPOSITE NEW GBAGI MARKET, NEW IFE
ROAD,IBADAN, OYO STATE, NIGERIA.
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