1 Nov 2011
MILE 11, Mohammad Farhad
The Global Economic Crisis, Contemporary Protectionism, and Least Developed Countries (LDCs)
MILE Thesis 2011, authored by Mohammad Farhad, under the supervision of Prof. Simon J. Evenett
The thesis paper investigates how the Least Developed Countries (LDCs) were affected by new trade restrictive discriminatory state measures during and after the global financial and economic crisis. It reveals that the treatment towards LDCs by crisis-era and post-crisis protectionism was not an exception and the ‘murkier forms’ of discrimination is also the most prevalent trade policy instruments used to discriminate against LDCs commercial interests. While ‘tariff measures’ were most common single source of discrimination to the LDCs, contrary to the global trend, increased use of ‘export taxes and restriction’ become as a major cause of concern for this group of countries. Manufacturing sector of LDCs, particularly machinery and equipments, was most vulnerable to crisis-era protectionism, which reflected in the fact that the highest number of trade restrictive interventions were targeted towards mix exporters and manufacturing exporters LDCs. While no LDC escaped unhurt by contemporary state protectionism, Asian LDCs, particularly Bangladesh’s commercial interests have been hit very hard by
state discriminatory policies. G20 members were found to be responsible for
implementing majority of discriminatory measures hurting LDCs commerce. Strong economic recovery during 2010 help governments to resist protectionist pressure, though failed to refrain erection of new trade restrictive state measures. Slowing and uneven global activity and macroeconomic uncertainty in 2011 reflected in the state policy responses through imposition of increasing trade restrictive interventions. This study reveals clear signal of resurgence of another wave of state protectionism globally, and targeted towards LDCs as well.