MGEC32H3 Chapter Notes - Chapter 10: The Bottom Billion, Anthony Venables, Dutch Disease
16 Apr 2016
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Document Summary
Rich country trade policy is part of the problem. There are some indefensible aspects of oecd trade policy o. The least defensible, from oecd citizens and ppl in developing countries, is the protection of agriculture o. We waste our money subsidizing the production of crops that then close off opportunities for ppl with few alternatives. Another dysfunctional aspect of rich-country trade policy is the tariff escalation o. Tariffs imposed on prosessed materials are higher than unprocessed materials. Make it harder for bottom billion to diversify their exports by processing their raw o materials before exporting them. Providing aid with the objective of promoting development and then adopting o trade policies that impede the objective. Bottom billion trade barriers are also part of the problem. Trade protection and focusing on the domestic market has been the strategy for bottom billion for 40 yrs.
