*{Do Developing Countries Have Their Rightful Place in WTO Priorities? [http://www.weforum.org/site/knowledgenavigator.nsf/Content/Do+Developing+Countries+Have+Their+Rightful+Place+in+WTO+Priorities%3F?open&topic_id=300250000&theme_id=300] 22.06.2000 Southern Africa Economic Summit 2000} There was strong support from panellists at the session for a new round of WTO trade negotiations as a vehicle through which developing countries could achieve their goals in the organization. "We must have a round as fast as possible," said South Africa's Trade and Industry Minister Alec Erwin. European Trade Commissioner Pascal Lamy said a new round should be balanced, and all members should contribute to setting its agenda. Susan Esserman, Deputy US Trade Representative, also supported the idea. Developing countries were urged to ensure their voices are heard in the WTO and other international forums, and not be left behind by rapidly advancing technology. In introducing the panel, chairman William R. Rhodes, Vice-Chairman of Citigroup, USA, said the question in the session's title is a timely one, in the wake of the WTO conference in Seattle, which was marked by protests. It must be faced that globalization is a reality, he said, and the meaningful participation of the developing countries is essential to the success of the WTO. He praised Director-General Mike Moore for his work towards transparency in the organization since his appointment in September. Moore stressed the importance of integration in promoting peace and stability. This is shown by attitudes between his country, New Zealand, and its regional partners, and in the European Union, which is a united force for good. Areas like the Balkans, on the other hand, are places of instability and fear. Critics of the WTO said Africa has been marginalized, and there is some truth in the claim, said Moore, when 41 of the 136 members produced only 1% of world trade. He urged developing countries to become fully involved in the WTO's deliberations. Some countries could not afford missions in Geneva, and the WTO was helping to facilitate their participation. Moore praised the US and EU for steps to open their markets to products from the least developed countries. Other countries are "loosening up", and the WTO is spending a lot of time creating mechanisms to implement such agreements. He promised that an "integrated framework" to help market the products of least developed countries would be made to work. The WTO is planning a conference of African trade ministers and workshops for its young officials. Referring to the Seattle congress, Moore rejected reports that African nations had been marginalized in its decision-making. The congress did not fail because of protests or inadequate processes, it failed "because we couldn't agree". Hours of work since then have brought some progress, but there must still be more flexibility. Lamy said the answer to the question being considered is, "No, not yet." He agreed to some extent that the Uruguay Round imposed substantial obligations on developing countries without delivering commensurate benefits. Although globalization brings a lot of benefits to emerging economies it has not done so thus far for most sub-Saharan countries. "The key economic facts are clear," said Lamy. "The share of least developed countries in world trade is in steady decline - from 0.8% in 1980 to 0.4% by 1997. Sub-Saharan Africa's share has gone down from 1.2% to 0.8%." Who is to blame - the trade system, Africa or its partners in the North? It is all three, said Lamy, which means they have to work together to find a solution. The continent has to face up to three hard questions: Is trade liberalization good for development? Is trade liberalization alone enough for development? Can multilateral trade rules be better tailored to the needs of developing countries? Expanded trade should lift everybody's boat, but there is a split between a group of successful middle-income developing countries and a large number of nearly 80 developing and transitional economies. "This group comprises 35% of the world population, who don't really feel they're in any boat. This is neither acceptable nor sustainable," said Lamy. The industrialized countries bear a major responsibility for making the trade system more responsive to the needs of developing countries. "We must do more to help the least developed countries become a major player in institutions like the WTO." The EU is committed to making its support for agriculture less and less trade distorting. "We are delivering on our commitments, and we are ready to do more," he said. But developing countries must also continue on a judicious path of liberalization. Governments must design measures to cushion its impact and distribute the benefits and opportunities more fairly. Priorities should be to reinforce the WTO's rule-making function and encourage regional integration so that developing countries could "punch their weight". Esserman backed the concept of partnerships, though she said it is sometimes inadvisable to talk about developing countries as a group, because their interests can be different. By forming partnerships, however, they could maximize their chances of reaping the benefits of WTO agreements. To reach the markets being opened up by measures like the Africa Trade Bill, there had to be capacity building, and coordinated use of technical assistance. Developing countries should take part in WTO programmes on e-commerce, and use the WTO's dispute settlement system, which is a great leveller. Vasundhara Raje, Minister of State for Small-Scale Industries and Agro and Rural Industries in India, said her country has a great deal of hope. However, there are concerns about the inconsistent application of WTO rules on matters like patents and subsidies, and the imbalances of the Uruguay Round. Labour standards should be made clearer, and not be used to hold back developing countries. She said South African President Thabo Mbeki's vision of an African Renaissance is a common dream for all developing countries. Carlos A. Bulgheroni, chairman of Bridas Corporation, Argentina, said the concentration of global power is a fact. Instead of protesting, people should find ways in which they could profit from participating in the new economy, which is about opening up the world. No one would "invite them to the table". Alec Erwin said that in a global world, the question of equitable governance of its economy is paramount. If the WTO did not consider the priorities of developing nations as the same as those of the global community, there is a problem. The only way for the WTO to facilitate a more effective world economy is through a new extensive and balanced negotiating round. The Uruguay Round was intended to meet the problems of the developed countries. As globalization occurs, all countries start to face the same problems. Erwin mentioned areas such as anti-dumping measures, counter-tariffs, labour standards and complex legislation as issues that have to be properly considered. Rules are necessary, but they must be rules that everyone accepts. "We don't have the luxury of time. We must unlock the flow of resources in the world economy," said Erwin. Reporting on the session about the workshops on openness, Peter Staude, Managing Director of Hulett Aluminium, said key actions recommended were the accelerating of trade reforms as part of general economic reforms, the integration of investment strategies, a striving for predictability in tariff reductions, and even the integration of some production capacity. Developing countries must work together in the WTO and if they had an ambassador anywhere, it should be with the trade organization. *{Contributors: Bulgheroni Carlos A. Erwin Alec Esserman Susan Lamy Pascal Moore Mike Raje Vasundhara Rhodes William R. Staude Peter H.}