1. University of Papua New Guinea International Economics Lecture 13: Trade Policy – Challenges

2. The University of Papua New Guinea Slide 1 Lecture 13: Trade Policy – Challenges Michael Cornish Overview –Links for the Group Assignment –Graph: Developing countries opening to trade Globalisation and low-wage labour Globalisation and culture Globalisation and the environment The WTO and national independence

3. The University of Papua New Guinea Slide 2 Lecture 13: Trade Policy – Challenges Michael Cornish Links for the Group Assignment The Bank of Papua New Guinea Monetary Policy Statements –See: https://www.bankpng.gov.pg/bi-annual- statementshttps://www.bankpng.gov.pg/bi-annual- statements WTO, trade profile: –http://stat.wto.org/CountryProfile/WSDBCountry PFView.aspx?Country=PG&Language=Fhttp://stat.wto.org/CountryProfile/WSDBCountry PFView.aspx?Country=PG&Language=F

4. The University of Papua New Guinea Slide 3 Lecture 13: Trade Policy – Challenges Michael Cornish Links for the Group Assignment United Nations, trade profile: –http://comtrade.un.org/pb/FileFetch.aspx?docID =5393&type=country%20pageshttp://comtrade.un.org/pb/FileFetch.aspx?docID =5393&type=country%20pages The World Bank, trade profile: –http://wits.worldbank.org/CountryProfile/PNGhttp://wits.worldbank.org/CountryProfile/PNG ANU Development Policy Blog: –http://devpolicy.org/papua-new-guinea-an- assessment-of-trade-performance-20141106/http://devpolicy.org/papua-new-guinea-an- assessment-of-trade-performance-20141106/

5. The University of Papua New Guinea Slide 4 Lecture 13: Trade Policy – Challenges Michael Cornish Links for the Group Assignment PLUS: –Simply google “papua new guinea trade policy” !! –I found lots of good resources!

6. The University of Papua New Guinea Slide 5 Lecture 13: Trade Policy – Challenges Michael Cornish Links for the Group Assignment Import cover: –Sometimes called the import ratio –It is the ratio of a country’s total imports to that country’s total foreign exchange reserves –Also see: http://www.economist.com/node/16793524 http://www.economist.com/node/16793524

7. The University of Papua New Guinea Slide 6 Lecture 13: Trade Policy – Challenges Michael Cornish Year of trade liberalisation: South Korea: 1962China: 1978India: 1991

8. The University of Papua New Guinea Slide 7 Lecture 13: Trade Policy – Challenges Michael Cornish Globalisation and low-wage labour Low wages in developing countries Poor working conditions in developing countries –Exploitation or opportunity?

9. The University of Papua New Guinea Slide 8 Lecture 13: Trade Policy – Challenges Michael Cornish Globalisation and low-wage labour Global negotiations for higher labour standards Concern from developing countries (such as Bangladesh) that this will be a form of protectionism for developed countries… –…because developing countries will struggle to meet their standards!

10. The University of Papua New Guinea Slide 9 Lecture 13: Trade Policy – Challenges Michael Cornish

11. The University of Papua New Guinea Slide 10 Lecture 13: Trade Policy – Challenges Michael Cornish Globalisation and culture The McDonald’s effect Cultural homogenisation Here in PNG? –Cargo cults! But isn’t this just what people want? Access to the same goods and services that the rich world enjoys?

12. The University of Papua New Guinea Slide 11 Lecture 13: Trade Policy – Challenges Michael Cornish

13. The University of Papua New Guinea Slide 12 Lecture 13: Trade Policy – Challenges Michael Cornish Globalisation and the environment The environmental Kuznets curve Illustrates a theory that, when a country initially develops, it damages the environment But when the country is developed enough, it starts to allocate funding to environmental protection –I.e. reflects personal preferences for income v. health v. environmental protection

14. The University of Papua New Guinea Slide 13 Lecture 13: Trade Policy – Challenges Michael Cornish Beijing smog in the early evening...

15. The University of Papua New Guinea Slide 14 Lecture 13: Trade Policy – Challenges Michael Cornish The environmental Kuznets curve

16. The University of Papua New Guinea Slide 15 Lecture 13: Trade Policy – Challenges Michael Cornish Globalisation and the environment Problems with the environmental Kuznets curve: –Proximity! I.e. people do not seem to care as much about places they cannot see –Many environment issues are regional or global, and need international cooperation

17. The University of Papua New Guinea Slide 16 Lecture 13: Trade Policy – Challenges Michael Cornish Globalisation and the environment Climate change and carbon tariffs Pollution havens –The concentration of pollution-making industries in developing countries, where there are less environmental regulations –An example from the textbook? Ship-breaking in Alang, India…

18. The University of Papua New Guinea Slide 17 Lecture 13: Trade Policy – Challenges Michael Cornish Ship-breaking in Alang, India

19. The University of Papua New Guinea Slide 18 Lecture 13: Trade Policy – Challenges Michael Cornish The WTO and national independence Benefits of membership v. loss of national sovereignty Do the citizens have sovereignty when their representatives hand over power to an international institution? –Is this democracy? –Of course, there is still the right to withdraw from the WTO…

20. The University of Papua New Guinea Slide 19 Lecture 13: Trade Policy – Challenges Michael Cornish

21. The University of Papua New Guinea Slide 20 Lecture 13: Trade Policy – Challenges Michael Cornish

22. The University of Papua New Guinea Slide 21 Lecture 13: Trade Policy – Challenges Michael Cornish

23. The University of Papua New Guinea Slide 22 Lecture 13: Trade Policy – Challenges Michael Cornish