How has international trade underdeveloped the Less Developed Countries (LCDs)?

Résumé du document

Following the decolonization period and the collapse of USSR (1989), a lot of countries gained their independence and entered the arena of international trade, arena previously created by few states known today as the North, or the developed countries. Therefore, the structure of the system is adapted by a few countries and tends to favour these 'old states'. Even if the colonization period is over, the less developed countries are still in a position of dependence upon the industrialized countries (the former colonizers); the current neo-colonialism period takes the form of economic colonialism. Indeed, the game of international trade is largely dominated by the North, 80% of the global trade is among the developed countries, of which the population represents only 20% of the global population. This essay will discuss how international trade has under-developed the less developed countries (LDCs). International trade can be defined as the exchange of goods and services between states; and according to the OECD (Organization for Economic Cooperation and Development), the LDCs are the countries which have a per capita income less than $650.

Extraits

[...] The LDCs don't have the necessary skills to compete with the industrialized countries, and this phenomenon is intensified by the brain drain: the small part of the educated persons in the LDCs leaves the developing countries to live and work in the developed countries. So the economy of the LDCs can't evolve and stay mainly traditional and informal. If LDCs are specialized in the export of raw materials, it means that they need to import manufactured products from developed countries. Because the market value of the goods they export is lower than the market value of the products they import, LDCs have a balance trade deficit. So they are dependent on foreign aid, especially official development assistance (ODA). [...]

[...] In International Politics on the World Stage. Todaro, M. (2000). “Diverse Structures and Common Characteristics of Developing Nations”. In Economic Development, 7th edition, pp.29-62. Todaro, M. (2000). “Theories of Development: A comparative Analysis”. In Economic Development, 7th edition, pp.77-104. Todaro, M. (2000). “Historic Growth and Contemporary Development: Lessons and Controversies”. [...]

[...] In The Political Economy of International Relations, p.173. Michael Todaro (2000). “Historic Growth and Contemporary Development: Lessons and Controversies”. In Economic Development, 7th edition, p.132. Ingolf Vogeler, http://www.uwec.edu/Geography/Ivogeler/w111/cent- per.htm John Baylis and Steve Smith (2005). The Globalization of World Politics. An introduction to international relations, 3rd edition, p.200. Gumisai Mutume, “What Doha means for Africa”, in Africa Recovery, Vol.15, No 14, December 2001, p.3. Michael Todaro (2000). “Historic Growth and Contemporary Development: Lessons and Controversies”. In Economic Development, 7th edition, p.131. [...]

[...] At the end, the international trade has clearly underdeveloped the LDCs because of inelastic foreign demand for the developing countries' exports, unjust economic system led by the North, protectionist policies of the industrialized nations and monopolistic or oligopolistic practices of the multinational corporations. So the globalization of trade and finance can be seen a major cause of higher unemployment, a general decline in working standards, increased inequality, greater poverty for some, current financial crises, and large-scale environmental degradation”[11]. Bibliography Baylis, J. [...]

[...] How has international trade underdeveloped the Less Developed Countries (LCDs)? Countries have been trading for a long time. This trade intensified during the colonization period, since the 15th century. The example of the slave trade triangle shows that trade was not only established among colonial powers, but also with other countries in Africa and Asia to obtain the necessary labour force. After the Second World War, the winning nations established the Bretton Woods System in order to promote free trade. [...]