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Shvoong Home>Law & Politics>WTO: The Price We Pay Summary

WTO: The Price We Pay

Book Summary   by:victorialucas     Original Author: R.C.
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The Price of Progress On Labor and Human Rights WTO rules put the “rights” of corporations to profit over human and labor rights. The WTO has ruled that it is illegal for a government to ban a product based on the way it is produced, such as with child labor. It has also ruled that governments cannot take into account “noncommercial values” such as human rights, or the behavior of companies that do business with vicious dictatorships such as Burma when making purchasing decisions. On Health, Safety and Secure Lives The WTO’s fierce demand of ‘Trade Related Intellectual Property’ rights (TRIPS)—patents, copyrights and trademarks—comes at the expense of health and human lives. The WTO has protected pharmaceutical companies’ ‘right to profit’ against governments seeking to protect their people’s health by providing lifesaving medicines in countries in areas like sub0saharan Africa, where thousands die everyday from HIV/AIDS. In 2001, developing countries won an important victory when they affirmed the right to produce generic drugs (or import if they lacked production capacity), so that they could provide essential medicines to their populations less expensively. Unfortunately in 2003, many new conditions were agreed upon to make it more difficult for countries to produce those drugs. Multinational companies have little regard for the safety and security of the indigenous peoples. Where company infrastructures are built, poor villages has been displaced. That these companies are more than rich enough to ensure safety measures is logically faulty. In December 2002, the Philippine government approved the full commercialization of BT corn in the Philippines, allowing this GMO variety to be planted anywhere in the Philippines. Immediately, Monsanto started seed production. Protests and hunger strikes from anti-GMO groups went unheeded by the government. In one of those Bt corn fields, planted right beside the homes of an indigenous community in Polomok, South Cotabato, the risk became real: in July 2003, as the Bt corn shed their pollen, people around the are developed cough, breathing difficulties, vomiting and other symptoms. The problem became so bad that they had to evacuate their homes. On the Environment The WTO is being used by corporations to dismantle hard-won local and national environmental protections, which are attacked as “barriers to trade”. The very first WTO panel ruled that a provision of the US Clean Air Act, requiring both domestic and foreign producers alike to produce cleaner gasoline, was illegal. The WTO declared illegal a provision of the Endangered Species Act that requires shrimp sold in the US be caught with an inexpensive device allowing endangered sea turtles to escape. The WTO is attempting to deregulate industries including logging, fishing, water utilities, and energy distribution, which will lead to further exploitation of these natural resources. Privatization The WTO is seeking to privatize essential public services. The WTO’s General Agreement On Trade in Services (GATS), includes a list of about 160 threatened services. If the Philippine government agrees to the expansion of its GATS agreement, it would mean further opening up of various industries classified under SERVICES to foreign companies and investors. These include transportation, media, advertising, telecommunication, and others. It also means services currently under public ownership and management will have to be opened up to private investors, thus facilitating privatization of services.
Apart from water and power services which the Philippine government has already started privatizing, these include health, education, housing, postal services, waste disposal, etc. Filipino consumers are only too familiar with continuously rising water and electricity rates, which is only one of many burdens arising from privatization. The Bondage of Debt The International Monetary fund was engineered by the US after World War II. The IMF loans huge amounts of money to nations in need and helped stabilize the economy. But if the nation risks “defaulting” on its loan, the IMF will give additional loan but wit strings attached. Austerity budget will be designed for the nation which means higher prices for gasoline, food and electricity measures. In the Philippines, the international financial institutions (IMF, the World Bank, and the Asian Development Bank; and by the North governments that control them) have pushed for wanton liberalization in exchange for more borrowings. Privatization is commonplace loan conditionality. IFI lends our country money for privatization projects which benefit corporations, usually foreign. It would look like that developing countries, contrary to what was stated in the WTO Report Card III, have not been “opening their markets voluntarily”. Fabulous Wealth in the Face of Grinding Poverty True, low wages, poverty, and difficult working conditions are not new to developing worlds. At no other time in human history have there been so much wealth. And yet so many exist in dire poverty. A number of rich men, such as Bill Gates, are actually richer that the annual income of many third world countries. According to the UN, about 480 million men, women and children are going hungry. Here lies the crime: there is enough food to feed the hungry! For instance, the US government actually pays farmers not to grow food. American farmers are capable of producing so much food it would drive down the price of their crops; hence, farmers’ profits would go down. So the US government helps farmers to restrict the amount of food produced, while poor people suffer malnutrition. Unequal distribution of wealth is the cause of our misery. The WTO article mentions globalization as the “most effective anti-poverty measure the world has ever seen”. The strongest proponents of globalization are the advanced capitalist nations, the very nations which almost entirely monopolize the world’s wealth and power among themselves, and now they have gotten the rest of the world to adopt it through agencies such as the WTO. Should we end our misery by feeding ourselves to the wolves?
Published: June 27, 2007   
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  1. 3. karl marie

    great info

    great writing..very informative..i like it

    0 Rating Monday, September 03, 2007
  2. 2. ria mari

    good artricle

    nice article the world should be fede with articles like these..esp the ones that are mostly affected...

    0 Rating Monday, July 02, 2007
  3. 1. rigge smith

    comment

    good article...very informative.:))

    0 Rating Wednesday, June 27, 2007
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