The politics of global trade: why do some developing countries trade more yet earn less?

M.A.International markets have expanded through the global reduction of protectionist policies, such as tariffs and quotas, which has in turn expanded international trade between states. The reduction of trade barriers and the implementation of trade liberalisation have caused the international trade structure to change; resources are shifting away from traditional industries and into new ones resulting in new trade opportunities and trade-offs. However, the gains from increased international trade have been unequal; some states, mainly the industrialised, developed nations and the East Asian economies, have reaped the benefits from an increasingly integrated trading system. Numerous developing countries have actively reduced their barriers to international trade and have attempted to integrate their economies into the international trading system. Nevertheless, many of these developing countries are highly impoverished and uncompetitive in the global economy. Within this context, it is the purpose of this dissertation to determine with greater clarity why certain developing countries have significantly decreased their barriers to international trade but have not benefited, both politically and economically, from these actions. In other words, why have certain developing countries, such as those in Latin America, the Middle East, North Africa, South Asia and Africa, increased their trade liberalisation but not benefited from this increased openness. Additionally, why have other developing states, such as the East Asian economies, become key competitors within the global economy? In short, this study investigates why some developing countries trade more yet earn less. The examination of developing countries within the international trading system is presented in a theoretical perspective constructed with a focus on the three classic international relations theories, namely realism, liberalism and structuralism. Each of these theories is employed descriptively as well as prescriptively as tools to evaluate the nature of the international trading system as well as the positioning of developing countries within the trading regime. Applying these prisms of reality, certain developing countries’ position in the global economy are assessed and evaluated through an examination of the WTO and developing countries, the implementation of import substitution policies and export-led industrialisation strategies by various developing countries and the international trends that have caused various developing countries to be uncompetitive in the global trading regime