For more than fifty years WTO was classified as a part of a temporary trade agreement. In 1995, 76 countries have helped the WTO to be born; and President Bush had described it as the “new world order”.
The new organization was considered to encourage the former Communist countries of Europe and the developing countries of Latin America, Asia, and Africa to adopt business-friendly policies. The United States and other developed countries were sending a message: Adopt economic reform, and we will be there to bail you out if your economy gets into trouble. Promoters of these reforms hoped the changes would make developing countries more attractive to foreign investment and would integrate those countries even further into a competitive global economic network. Thus, the developing countries were more than happy to oblige. By August 2000 the number of WTO members had nearly doubled to 139.
George Bush’s Administration didn’t take into consideration that many developing nations were not ready for a business like that, and it has led to a big chaos and crisis in those countries. “It sounded too good to be true, and so it proved”. Here is what has to be implemented: “Negotiating this new environment will require companies to more rigorously evaluate political events and their contexts… and more carefully assess the links between the political, economic, and financial factors of risk".
Check out the article from Harvard Business Review: http://hbr.org/2003/08/the-new-world-disorder/ar/1
No comments:
Post a Comment