In: Economics
Less developed countries (LDCs) sometimes argue that industrialized nations' tariff structures discourage the LDCs from undergoing industrialization. Discuss the validity of this argument.
it is generally believed that development of developing country
sometimes could not take place beacause of developed country's
economic behaviour in international market. if we look closer
toward developed country we will find some kind of protectionism in
their policies.they called developed that clearly means that their
market is largely influsing,country uses trade tariffes to protect
their goods and other stuffs ,trade policies are put in place in
order to regulate import and exports trade. Notably, the primary
aim of the policies is to protect domestic products from foreign
competition by doing this they discourage the development of less
develop country. LDC do not possess large goods or services , they
can not compete in international market with economic giants like
USA ,CHINA etc but we know that because of globlisation every
market is connected with each other so when LDC import something it
will cost more then they can bear, and same happens when they
export , they do not find market to export because of so much
competition ,because of industrilisation country like USA CHINA
have became a regulater of price. so LDC are in the edge and
developed country are in the centre.
we can understand this by dependency theory and world system theory
of immanuel wallerstein. in this theory it is argued that developed
country alwayes exploit the less developed countries it is bacause
of less developed countries have less resources, less education,
higher man power, raw meterial they do not industrilised and all of
these reason are enough to keep them less develop. In dependency
theory is it believed that the reason of underdevelopment of these
countries lies within themselves but in modernization theory the
say that it is because of the structure of the international system
which made them less developed countries and they argues that, for
the development of these underdevelop countries it would be better
to trade with countries like them not big economic giant because
they will never let these country industrilised or developed.
so here we can conclude that , because less developed countries lack of resources and they are dependent on developed countries for goods and other resources, so developed countries regulate world economic according to themselves and they increase their tariffes so they can protect their products and stop other countries comming in their country, these increased tariffes, somehow it put negative impact on less developed countries and they do not have any choise but to accept the condition.so because all of these reason industrilisation or development in less developed countries could not take place or have very slow development