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Common values for the development round

Published online by Cambridge University Press:  22 December 2004

JOSEPH E. STIGLITZ
Affiliation:
Columbia University
ANDREW H. CHARLTON
Affiliation:
Hertford College, Oxford University

Abstract

In the traditional theory of international trade, multilateral trade agreements should be easy because self-interested governments unilaterally commit to reduce their own protection and, as a bonus, they reap positive externalities from liberalization by other nations. In practice national governments do not behave as though they are maximizing the welfare of a representative citizen, but instead they respond to pressure from a diverse mix of constituencies and competing special interests. Governments attempt to manage domestic trade-offs within international negotiations, so progress is slow and protection persists. The practical operation of trade negotiations, emblemized by the infamous ‘green rooms’, is characterized by factionalism, horse-trading, and brinkmanship.

Type
Snipings
Copyright
2004 Joseph E. Stiglitz and Andrew H. Charlton

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Footnotes

The authors would like to thank the Initiative for Policy Dialogue (IPD), and Simon Evenett, Andrew Glyn, an anonymous reviewer, and members of the IPD Trade Task Force for their useful comments at a meeting in New York in March 2004.