Question

Write a 1-2 page essay on whether the globalization of the world's economy resulting from the existence of the WTO has improved or worsened the lives of people throughout the world.

Answer 1

Globalisation is the world wide movement towards integrating countries, increasing interaction between people and the flow of goods and services between countries . It is difficult to find a clear definition of the term 'globalisation' ,but it is clear that it is associated with particular characteristics such as Growth in technology, Communication and brand expansion and recognition. There are many in the world that believe that the benefits of increasing global economic growth are being outweighed by the costs. The gap between the 'haves' and 'have-nots', for example, is an important source of frustration and disenchantment. The gap is made all the more obvious because of the spread of global mass communication. Globalisation has influenced the world economically, culturally and also it has improved the growth and development of technology. The first McDonald’s was opened in Illinois. By August 2002, there were more than 30,000 McDonald’s in 121 places and countries all over the world. It has the fastest growth rate in the restaurant as an example of globalization in our daily life .

In 1999, the WTO initiated a ‘Millennium Round ‘of negotiations in Seattle. However, the talks broke down before any agreement was reached, while in the meantime tens of thousands of people gathered to demonstrate against globalisation. The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct their business.¹     Globalisation and global trade can impact everything from the environment to health and living standard of the people globally.   WTO meetings and decisions will have an impact on income, flow of goods and services and the global demand . There should be strict trade rules in protecting the environment. MNCs expanding their operations in developing nations are actually threatening crucial environmental standards, the renewable energy sources and the natural resources in these countries .   Trade rules must not be allowed to take priority over environmental protection. Governments should control   genetically modified organisms (GMOs) as there is no evidence to prove the safety and the sustainable use of GMOs.

The WTO has promised the supply of life-saving medicines and access to agricultural production such cotton, coffee etc. However, the Doha round promises have not been met. Still the developing countries have seen no sign of the medicines due to the interference of the US and other rich countries . This underlines the fact that the WTO is under the control of rich countries such as US and EU. WTO and global trade rules may attempt to take over the   global food chain. However, the WTO has to work more in dealing with property rights and making genetically modified drugs cheaper in different countries . Interference WTO has helped in reducing tariffs and improving international trade. Last 2 decades there is a reduction of tariff into 15% and the global trade has also been increase . It has helped in growing local economies and improving living standard, health and life expectancy of people .

  The WTO has touched more than 500 trade issues between countries that helped in increasing trade between countries and reducing tension between countries . The trade liberalisation measures has increased that resulted in falling import prices in different countries . consumer expenditure and spending has decreased drastically due to the interference of WTO. Due to increase in volume of trade, more countries get into the picture of global trade and wide variety of consumer . It will ultimately increase GDP and   economic growth . The WTO has extended its policies and sharing of technology over the years .   Global poverty has been reduced due to increase in volume of global trade .   reduction in living costs lead to increase in living standard in LDCs.

To conclude, the World Trade Organisation has played an immeasurable   role and influenced different areas of global trade and globalization. It has t supported   in increasing income and living standard globally. The collaboration in working with the SDGs and the objective of sustainable development based on rational use of global resources and production of goods and services might improve the lives of people further.

Sources

https://www.wto.org/english/news_e/news18_e/wtoi_12feb18_e.htm

                http://e-info.org.tw/reviewer/kevin/2001/re-kevin01091001.htm