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T & SD Relevant Publications at SDPI Regional Initiatives (Institutional, Human, Organizational) Required to Implement the Agreements on Technical Barriers to Trade (TBT), and on the Application of Sanitary and Phytosanitary Measures (SPS) and their Provisions Abstract Developing country exporters are awakening to the reality that prices are not the only criteria for sellebility. As import tariffs decline and quota entitlements under the MFA phase out, production and trade regimes in South Asia will need to become leaner and cleaner, reflecting emerging consumer preferences and inter-governmental requirements. These are articulated in the form of a growing array of quality, social and environmental standards. In other words, only those products will have a competitive edge which are of a high quality, have no adverse health impacts embodied in them and can be safely disposed after use. Not surprisingly, these standards evoke reactions in the South, ranging from sovereign issues to concerns about non-tariff protection. There is merit in each of these viewpoints but there is also a convergence of interest as well as available recourse. Thus, industries in the south act in the national interest when their actions limit damage to the environment or institute health and safety measures for workers. Conversely, the World Trade Organization (WTO) has mechanisms for dealing with unfair trade practices. At the end of the day it is not only expedient, but also profitable for exporters to comply with the increasingly complex demands of international clients - both in the public and private sectors. However, ‘willingness’ to comply does not translate easily into ‘ability’ to comply. This is based upon a complex mix of institutions, policies, financial means and technical capacity. Further, such capacity needs to be able to address the different dimensions associated with compliance namely, the implementation of standards, information access and dissemination, certification and accreditation. The WTO Agreements on Technical Barriers to Trade (TBT), and on the Application of Sanitary and Phytosanitary Measures (SPS) contain provisions for harmonizing international standards and facilitating technical assistance to developing countries to comply with them. Developing countries often advocate the need to become more proactive in the standards setting process. The argument is that international standards should reflect their cultural affinities and environmental tolerances. There is no quibble with this but it does track back to the issue of scientific and institutional capability. Absent such capability, developing countries will not be able to comply with international standards, much less engage with the TBT, SPS and other voluntary ISBs in setting- for lack of a better word-‘south-sensitive standards’. This paper identifies regional capacity building approaches to enhance compliance with the TBT and SPS Agreements and company bilateral requirements pertaining to technical regulations and voluntary standards, in order to increase access for South Asian exports. Clearly there is an established need for this as regional and global economies become more closely integrated. However, the backward linkages with national capacity building imperatives are also emphasized. This recognizes both the embryonic nature of the initiatives underway in the region and the political and logistical complexities associated with regionalization. While there is undeniable merit in being forward looking, grounding this in the national context will make the regional constructions more realistic. The WTO Regime and its Possible Implications for Pakistan. Abstract This paper examines the historical background of multilateral trading system. It explains the basic principles of trade under World Trade Organization (WTO) and differentiates WTO agreements from “WTO organization”. It also problematizes the critical question, “Why the developing countries are not able to benefit from WTO regime” in the context of WTO-IFIs nexus. This paper discusses the power game of the Bretton Wood institutions as well as the power tactics used by major trading nations in WTO. It also analyses the coping strategies adopted by developing countries. The paper emphasizes on greater transparency and democratic governance of and about WTO not only at multilateral level, but also at national level. It also explores the possible implications of “Post_Cancum Scenario” on developing nations. It suggests several proposals for Pakistan to devise national level policies to get integrated into multilateral trading system, thus effectively take pat in negotiations or forward proposals at the international level. Trade-Related Aspects of Intellectual Property Rights (TRIPs) Agreement: Impact on Food Security of the people living in HKH. Abstract Pakistan’s part of Hindu Kush Himalyan (HKH) region comprises more than 50 percent of the total area of the country and 21.32% of total population. As many as 31.13 million people live in HKH. The region faces shortage of staple foods due to low local production, high transport cost and restricted access to food in many areas during snow season. Food security of the people living in HKH is not only affected by limited patches of flat land and extreme weather, it is also affected by “Trade Related intellectual Property Rights (TRIPs) agreement” of The World Trade Organization (WTO). The TRIPs agreement covers patents in articles 27-34. It says all inventions including those based on the exploitation of biological resources are patentable. Hence the agreement stands for monopoly rights even upon the life forms, ownership of seed, plant and animal varieties. The national and household food security is also affected by the TRIPs agreement. Moreover, this agreement promotes “bio-piracy” in the resource rich HKH region as it does not require the patent holder to either disclose the source of origin, get prior informed consent from the genetic resource/knowledge holder, or ensure that there is an equitable benefit sharing. This policy brief focuses on the impacts of the TRIPs agreement on HKH region of Pakistan and demands that nothing in the TRIPs agreement should affect the sovereignty of governments to take measures to protect their health and food security. Trends in Foreign Direct Investment & Trans-National Corporate Behaviour. Abstract The paper discusses recent trends in foreign direct investment and trans-national corporate behaviour and concludes key lessons and analyses implications for Pakistan. The study says acceleration of global economic integration has prompted many neo liberal economists to regard foreign direct investment as the elixir of economic revival for developing economies. However, while it can extend efficiency and productivity of a free market concept to developing countries, it brings a series of risks that expose marginalized domestic sectors and consumers to the ruthless and often volatile economic environment of the free market. The paper says investors in the global economic and financial markets are scared of political instability in Pakistan. The Impact of Environmental Standards on the International Trade of South Asian Countries. Abstract The relationship between trade and environment has always generated debate. Proponents of free trade/globalization assert the compatibility of trade and environmental objectives. The opposing view holds trade/globalization responsible for degrading the environment and rules out the possibility of synchronizing trade and environment objectives. The premise of this paper is that environmental regulations can cut both ways: they can be trade restricting but they also offer new market niches and can lead to cleaner production practices in the exporting countries. Also, in the final analysis, developing countries are left with little choice other than to comply with the increasingly stringent environmental regulations, in order to maintain their export shares. This paper reviews the international environmental standards likely to affect Pakistan’s exports, and the institutional initiatives in place to address national environmental. The scope for convergence is examined with a view to concerns potential win-wins, where cleaning industry means improved export, health and environmental benefits. A Trade-Off Between Expected Returns and Risk Among Farmers of Rice- Wheat Farming Systems of Punjab, Pakistan. Abstract A Target MOTAD risk programming model was developed and used to analyse alternative farming systems for the central Punjab of Pakistan. The profit maximising enterprise combination was found not to be significantly different than combinations that can achieve desired target income with some given levels of risk. However, enterprise mix and levels of activities for profit maximising LP model and risk efficient Target MOTAD was found to be significantly different. A comparison of MOTAD and target MOTAD was also made. Target MOTAD solutions always generated higher expected income with negative deviations less than those in the corresponding MOTAD solutions. If risk is conceived as deviations below target income, Target MOTAD solutions resulted in lower negative deviations and, thus, less risk. Moreover, the Target MOTAD efficiency frontiers are above the MOTAD efficiency frontier everywhere. WTO Agreements on Telecommunications and Information Technology: Implications for Pakistan. Abstract For developing countries, the WTO agreements on telecommunications and information technology will offer new opportunities for development in these sectors. Under the telecommunications agreement, the signatories will open door to competition from foreign countries. The IT agreement will eliminate customs duties and other charges on IT products. Pakistan has signed the telecommunication agreement with certain exemptions and commitments. However, it will sign the IT agreement during its 9th Five Year Plan. The development of information and telecommunications infrastructure is capital intensive and foreign investment would be of great help. Similarly free trade in IT products will reduce import costs and, in turn, manufacturing costs. However, with poor telecommunications infrastructure in rural areas and with almost no IT production industry, Pakistan, like other developing countries, will have to carefully assess implications of these agreements and devise an appropriate strategy to forestall any negative fall-out. This paper looks at Pakistan’s status viz-a-viz the two agreements, particularly the state of its IT manufacturing industry, the imbalances in its trade in IT products and suggests a strategy that it should adopt to minimise ‘subjugation’. Risk Efficient Resources Allocation in Agricultural Systems of Pakistan: A Farm Level Analysis. Abstract This paper develops farm plans that can ensure optimal utilisation of available farm resources for a given level of risk. In general, farm-planning models generate a large set of farm plans. Farmers can choose the plan that suits their production environment and is congruent with their attitude towards risk. To make the decision- making process easy for the farmers, this paper attempts to reduce the decision space that risk-programming models generate. It uses compromise-programming techniques together with risk planning methods for developing the best compromise farm plans. Compromise farm plans furnish very useful information on resource allocation and risk. Through the present extension networks, the model can be applied to improve resource use efficiency. It can also be utilised for assessing environmental costs in agriculture with little adaptation. The International Waste Trade and its Policy Implications for Pakistan. Abstract This paper surveys recent trends in the international waste trade, and looks at the national and international policy options southern countries like Pakistan have to employ in order to protect themselves from the harmful effects of toxic waste. The writer suggests that Pakistan should formulate its own system of monitoring and enforcement which should involve both governmental and non- governmental institutions. International environmental treaties and public pressure can also be used effectively against countries that allow the export of hazardous waste. Devaluation and the Balance of Trade in Pakistan: A Policy Analysis. Abstract Devaluation is frequently recommended as part of structural adjustment programs for attaining external balance. Estimating export and import demand functions is the conventional method of evaluating the likely effect of a devaluation on the external balance. In this paper we address an important critique of the conventional method of estimating export demand functions and make a case for using real effective exchange rates rather than relative prices in the demand functions. We also demonstrate that high income elasticities in the conventional export demand functions need not be cause for concern. Using quarterly data, we find a modified version of a Marshall-Lerner condition barely satisfied for Pakistan, suggesting little or no positive effect on the external balance due to a devaluation. This finding is reinforced by disaggregate export demand functions. Environment and Poverty: The Vicious Cricle. Abstract While the proportion and numbers of Pakistanis below the poverty line have declined over time, the record on human resource development is still poor, primarily due to the low level of public expenditure on education and health. Given that poverty and environmental degradation are mutually reinforcing problems, the paper traces three links in their complex relationship: the greater likelihood that the poor will be victims of environmental degradation; the adverse effect of the poor on their environment; and the lack of institutions to protect the rights of the poor. In order to break this vicious circle, the paper calls for investment in human development, especially in education and health for the majority. This can be done at the local level through appropriate infrastructure investment, building upon the success of participatory and community based programmes, and at the national level through legal and administrative reform. Please click here to view SDPI list of publications. This link will take you to SDPI website.
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