From Poverty to Power Green, Oxfam 2008 - weman

5 THE INTERNATIONAL SYSTEM TRADINGThese kinds of attitudes, and the developing countries’ refusal tocave in, have paralysed the Doha Round. On one level, this is betterthan accepting a ‘bad deal’ and the multilateral trading system continuesto function, however unfairly. But storm clouds are gathering over theglobal economy, fuelling protectionist sentiments in the North, andthat system is more fragile than it would be were the round to befunctioning smoothly and fairly. All it takes is for one major power toopenly defy a ruling by the WTO to precipitate a crisis of authorityand legitimacy in the institution, with serious consequences for themultilateral system. Rich countries have both a moral duty and along-term self-interest in ensuring that this does not happen.Shifting governments to the long-term vision that underpinned,for example, the USA’s willingness to give unilateral market access toits defeated opponents after the Second World War will not be easy.The strong economies need to offer more and demand less, ratherthan push the weak into further disadvantage. Developed countriesought to cut subsidies and open up their markets, while allowingdeveloping countries more ‘policy space’, not less, so that they mayfind the right trade and investment policies among the wide rangethat have led to economic take-off in different countries. 64Official trade rules are often less important in determining theeffectiveness of trade for development than the trade ‘realities’ of thesystem: access to finance; technology; or the nature of the chain ofbuyers and sellers for a particular product. These are discussed in Part3. More equitable global institutions and fairer rules for trade will notdeliver development on their own, but they hold out hope of at leastreining in the rapacious behaviour of the most powerful corporationsand countries, allowing poor countries and citizens to harness tradefor their long-term development.INTELLECTUAL PROPERTYThe global governance of ‘intellectual property’ (IP) such as patents,copyrights,and trademarks constitutes one of the most glaring examplesof the rigged rules and double standards that bedevil the internationaltrade system. While powerful governments seek ever greater liberalisationof trade and capital markets, they are using their negotiatingclout to force the global system towards increasing levels of ‘knowledge325