World Trade Organization's Policies Affecting Afghan Fragile Economy

Central Asia, No. 68. Summer 2011, pp. 1-22.

23 Pages Posted: 26 Apr 2016

See all articles by Sarfraz Khan

Sarfraz Khan

University of Peshawar - Area Study Centre (Russia,China & Central Asia)

Noreen Naseer

University of Peshawar

Date Written: 2011

Abstract

This paper attempts to assess policies of World Trade Organization (WTO) adversely affecting Afghanistan’s fragile economy. It also charts policies of WTO that not only grant supremacy to trade and commercial interests over values such as human rights, labor rights but also discriminates domestic trade in least developed states such as Afghanistan. It illustrates that every global economic agency may not aim at bringing prosperity and alleviates poverty, in Afghanistan.

The formation of WTO has changed the approach of the world community, both in the (developed) North as well as in the (developing) South towards trade and commerce. Ironically many states of the South became members of WTO without fully appreciating and understanding its agenda.

Some of the developing states have undergone numerous economic changes: some states, such as China, became huge exporters; others, such as India and Brazil began encouraging foreign investment and multinationals. Therefore, participation in WTO of developing states, with exports or markets, became inevitable, since many complex issues associated with trade and commerce arose and needed resolution. Numerous developing states joining WTO were attracted by a mechanism that deals with trade, services and labor issues. However, many (least developing) states were forced or pushed to join WTO due to fear of economic isolation.

Till to date none of the ministerial conferences of the WTO can be considered a complete success. The recent Doha Round faced tough resistance from developing states on expanding free trade. Pascal Lamy, Director General of WTO, expressed alarm regarding the failure of the Doha Round that may threaten even the very existence of WTO. Since its inception, debates on agreements related to free trade, competitive markets, environmental issues and labor standards continue without a general consensus on any of these problems. Rather these problems have created misunderstanding and mistrust even amongst the countries of the North.

Afghanistan situated at the confluence of hydro-carbon rich, Middle East, Central Asia and densely populated Indian sub-continent, owing to its fragile economy and political turmoil, initially declined to join WTO. However, in 2003, Afghan government applied for observer status and may eventually get membership following fulfillment of certain economic obligations.

This paper is descriptive and analytical, assessing certain WTO policies affecting fragile economy of Afghanistan.

Keywords: WTO, Afghanistan, Economy, Policies, Poverty, Least Develop

Suggested Citation

Khan, Sarfraz and Naseer, Noreen, World Trade Organization's Policies Affecting Afghan Fragile Economy (2011). Central Asia, No. 68. Summer 2011, pp. 1-22., Available at SSRN: https://ssrn.com/abstract=2764879

Sarfraz Khan (Contact Author)

University of Peshawar - Area Study Centre (Russia,China & Central Asia) ( email )

University of Peshawar, Peshawar, Pakistan
Peshawar, Khyber Pukhtoon Khwa 25120
Pakistan

HOME PAGE: http://www.asc-centralasia.edu.pk/index.html

Noreen Naseer

University of Peshawar

Quaid-E-Azam College of Commerce
Peshawar, Khyber Pukhtoon Khwa 25125
Pakistan

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