Book Reviews

Book Review: Trade Policy, New Century: The WTO, FTAs and Asia Rising

0 13

By Razeen Sally

London: Institute of Economic Affairs, 2008, ISBN 9780255365444, 229 pp., £ 12.50(pbk.)

 

By Salih Altundere | 15 April 2010

Based on a classical-liberal approach, in his recent book Razeen Sally provides anaccount of current challenges to free trade and offers solutions that he thinks bestfit to the 21st century developments. He starts with providing a historical backgroundof the issue and giving a summary of the main political and economic arguments infavour of free trade. According to Sally, although ideas about free trade started inthe West –mainly by Adam Smith and David Ricardo, with the argument of absolute and comparative advantages- and were originally exported to the rest of the world,challenges for trade policy today come mainly from Asia.

Trade_Policy_New_Century

 

Most Asian countries, China being the major one, have successfully integrated into the world economy, but this has been done chiefly through unilateral liberalisation, ratherthan with a process of multilateral negotiations. This has also been the situation formost other developing countries. In fact, as the recent stalemate of the Doha Roundand difficulties facing World Trade Organization show, the author argues, the top downliberalisation approach of post-war period which relies on the multilateral institutions,and its decoupling from laissez-faire do not fit 21st century realities.

 

Sally calls for unilateral liberalisation within the context of small and limited government and criticises “globalization and social democracy” approach which holds that freetrade abroad is compatible with government intervention to remedy domestic marketfailures, arguing that it has been the governments most of the time fail. For example,for the case of infant industries, he argues, in East Asia its record is mixed at best inJapan, South Korea and Taiwan; non-existent in free-trade Hong Kong and Singapore;and failed in South-East Asia (e.g. national car policies in Malaysia and Indonesia).And in Latin America, South Asia and Africa it has been a disaster not dissimilar toindustrial planning in ex-command economies. Therefore, according to Sally, opennessand free trade is necessary for growth and development. He says that the historicalrecord shows that countries that are more open to the world economy perform betterthan those that are less open and no country on earth has seen a sustained rise inliving standards without being open to the world.

 

 

Want to Read More?

 


 

* Published in the First Issue of Journal of Global Analysis (JGA).

About the author / 

CESRAN Int.

Leave a reply

You must be logged in to post a comment.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

CESRAN Blog

  • 24th Issue is Online Now!

    Vol. VI | No. III – July-August-September 2020 To Download the Magazine Click Here… CONTENTS 05-14….. World News by Ebru Birinci 17-24….. Preparedness for an Uncertain Future “The Only Thing We Have to Fear is Fear Itself” by Professor Mark Meirowitz 25-39….. EU LAW vs UK LAW The Primacy of EU Law over National Law:…

  • IEPAS2020 is Going Virtual!

    Dear Friends and Colleagues, IEPAS2020 is Going Virtual! Due to the COVID19 pandemic, we are holding our entire conference virtually by streaming all of the live sessions. You may participate in all of our virtual networking events. In case of missing a session, you may get full access to the replays of every session since all…

  • The 13th issue of JCTS (Journal of Conflict Transformation & Security) is out now…

    The 13th issue of JCTS (Journal of Conflict Transformation & Security) is out now… Vol. 8 | No. 1 | 2020 Click here to Download the Entire Issue   TABLE OF CONTENTS Editor’s Note By David Curran Introduction By Nergis Canefe Research Articles Statelessness as a Permanent State: Challenges to the Human Security Paradigm By…

  • The 19th Issue of The Rest: Journal of Politics and Development is Out Now!

    The 19th issue of the rest: journal of politics and development is out now. Download the issue here… TABLE OF CONTENTS Research Articles Turkish AK Parti’s Posture towards the 2003 War in Iraq: The Impact of Religion amid Security Concerns By Alberto Gasparetto Nigeria and the Great Powers: The Impacts of the Boko Haram Terrorism on…

  • CESRAN International Named again amongst the Top Think Tanks in the World

    CESRAN International is pleased to announce that it has been named again amongst the world’s best think tanks. The 2019 Global Go To Think Tank Index ranked CESRAN International 141st among the World’s “Top Think Tanks in Western Europe” 75th among the World’s “Top Environment Policy Think Tanks” 153rd among the World’s “Top Foreign Policy…

  • THE 18TH ISSUE OF THE REST: JOURNAL OF POLITICS AND DEVELOPMENT IS OUT NOW.

    The 18th issue of the rest: journal of politics and development is out now. Download the issue here… TABLE OF CONTENTS Research Articles The Foreign Policy Decision Making Approaches and Their Applications Case Study: Bush, Obama and Trump’s Decision Making towards Afghanistan and the Region By Sharifullah Dorani Evaluating the Explanatory Power of Social Identity Theory,…

Newsletter