Successful conclusion of Doha Development Round can spur economic growth and provide necessary stimulus to the global economy. This is a standard line of the developed world when dealing with the developing world. But look at the debates from inside the ‘Capitalistic Church’, it is a cheap ‘nautanki’ at best. You should have seen the ‘Kabuki Dance’ yesterday in the US Congress when the ‘Auto-Chiefs’ descended on the capital hill and performed in front of the cameras. Nothing was spared, from begging to bullying every trick was tried with little success. Guess what will ultimately happen? I can bet you that the domestic automakers would get everything they seek with no strings attached what-so-ever. This is called the all American “Classic Kabuki Dance”. Unfortunately the whole world is watching CNN, Fox and CNBC and with all this the administration expects to negotiate a fair international trade agreement?
Multilateral trade agreements like Doha Round are not achievable in contemporary world unless India is on board. It not only represents 1.1 billion people of India, but speaks for millions of small and marginal farmers of the developing world. Having G-8 or G-20 around a table is a futile exercise. Indo-US civilian nuclear deal is a perfect template for any future negotiations. Once an agreement is concluded between India and the United States, the next stop should be Brazil. If India can live with a trade agreement, so would Brazil. Mexico and other South American countries are likely to rally around Brazil. Once you have US, India, Brazil and Mexico on the same page, the group should take Canada along to the next stop: South Africa. This stage could take a while because you would be roping in not just South Africa but the whole of African Union. This is the continent that everyone needs to pay attention to. The poorest of the poor live on the continent of Africa. Unless the group is ready to accommodate Africa, no multilateral trade agreement is worth the paper it is written on. This is not about morality, this is about common sense! Ask Bill Gates about it.
Once you have North and South America with Africa and India on-board, this is the time to talk to European Union. I very seriously doubt if they would have an appetite left to take protectionist postures. They would realize that the next to join the band-wagon would be China, Japan and Russia (non-member). Europe does not want to be isolated but has become used to blackmailing America and the rest, being one of the founder members of the WTO (World Trade Organization). The United States under the new administration must stop coddling Europe as a natural born cousin and forge the new relationship with long-lost capitalist sibling: India. No other country in the world has more in common than India and America. 70% of the people in each country identify with free market and capitalism. Europe and Japan are more like welfare-states. George Bush is beginning to understand this paradigm. Hopefully President Barack Obama would learn fast and change the beaten track.
Inside Story – Can the Doha round be saved?
Davos Annual Meeting 2007 – Frozen Trade Talks
Filed under: International Tagged: | African Union, Auto-Chiefs, begging to bullying, Capitalistic Church, Classic Kabuki Dance, dead or in deep freeze, Developed World, developing world, Doha Development Round, Doha Round, Indo-US Civilian Nuclear Deal, Kabuki Dance, nautanki, President Barack Obama, South Africa, South American countries, stimulus to the global economy, US Congress, whole world is watching CNN Fox and CNBC, World Trade Organization, WTO
