Globalization, Trade, and Economic Development: The by Richard L. Bernal (auth.)

By Richard L. Bernal (auth.)

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Additional resources for Globalization, Trade, and Economic Development: The CARIFORUM-EU Economic Partnership Agreement

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Bananas and sugar are vivid examples of products where imports from the ACP cost far more than they do on the prevailing world market. The EU regime was a nontransparent development aid mechanism through which individual farmers earned a bounty paid by the unwitting consumers across Europe. The system of preferential trade also reflected entrenched corporate interest, shielding the European market from US MNCs such as Chiquita and Dole. The negotiations that took place between April 2004 and December 2007 were, therefore, the most difficult in the history of the relationship between the EU and the Caribbean.

There has been a resurgence of the debate about the efficacy of aid and the abuse of aid to pervert policy in the recipient country. The current debate is a repeat of the early debate of the late 1950s and1960s when the question of the efficacy and desirability of foreign aid was first mooted. 58 Foreign aid, it was said, was an instrument of foreign policy of developed countries,59 and this invariably implied that the development objectives were diluted. 64 The faith in the procreative power of development aid persisted in spite of criticisms and has been the conventional wisdom since World War II.

Concerns about globalization and the emergence of advanced developing countries prompt changes in EU trade and aid policy toward the developing countries. The EU was very concerned about its ability to be internationally competitive. A European Commission document titled “Global Europe: Competing in the World” explains the prevailing state of mind: “More countries than ever before are seizing the opportunities of globalisation. In the second half of the twentieth century, the United States, Europe and Japan drove the global economy.

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