Fight for Economic Recovery Also Needs Commitment on Globalization

Perhaps, it is the right time WTO Chief came up with his statement when countries (irrespective of the level of development of their economies) and their leaders are looking at protectionism as a short-term means to ride on their road to economic recovery. After all globalization ball started moving recently in the last decade or so to reach the scales to finally see a ‘market inclusive’ global economy leading to the ultimate optimal allocation of the resources to achieve global economic sustainability and create a win-win for all the participant countries.

According to the press statement “World Trade 2008, Prospects For 2009”, the collapse in global demand brought by the biggest economic downturn in decades will drive exports down by roughly 9% in volume terms in 2009 i.e. the biggest such contraction since the Second World War, WTO economists forecast today (25 March 2009). They expect the LDCs (who were supposed to be the largest beneficiary of the globalization process) to be most affected, which is most unfortunate. There is no doubt why WTO Chief Mr. Lamy says “Trade can be a potent tool in lifting the world from these economic doldrums. In London G20 leaders will have a unique opportunity to unite in moving from pledges to action and refrain from any further protectionist measure which will render global recovery efforts less effective,”. The larger question is, “Does the future of developed economies at risk due to the potential roll-back in the global trade volumes and are the global leaders committed to fight this out rather than complimenting the financial meltdown of 2008?”