The Market: An Unequal Exchange?

The claim is put forward that the terms of international trade disadvantage developing countries and are inherently unfair or unequal. This has placed trade at the centre of development debates with calls from many NGOs that ‘trade not aid’ should be the focus of development policies. Rather than questioning a link between trade and development per se, questions have been raised over the elevation of the market as the key institutional form for regulating trade. Critics also claim the market is neither free nor fair in its current institutional articulation, with uneven deregulation favouring developed countries over the developing countries that have lowered their trade barriers more rapidly. In the debate over trade and development, the role and limitations of the market — both as an ideal but also particularly at the level of implementation — remain divisive. For some a return to a more regulated trade environment — or at the very least a move to a more evenly deregulated trade environment — is crucial before trade can begin to serve the needs of developing countries.