Differences in Worlds Economic Models. Structural Trade Adjustment. Fair Trade policy - Assignment Example

Promoting the concept of globalization and opening gates for multinationals, the BWIs designed such exchanging trade policies in which there is an exchange of business and generation of the profits. High privatization, reduction of Government interference, reduction of public spending, wage suppression, low tariffs, and high international trade exchange are features of SALPs Structural adjustment loan programs (WHO). SALs are adjustments for poorer states while these are sources of profit for richer countries.

SALs are instruments to provide loans to under developing nations in terms of availing their geographical resources. This is to favor MCNs Multinational Corporations, which take such resources for incremental profit maximization activity. International businessmen, money makers, stake holders and policy executors all benefit from SALs but keep detrimental effect for international loan borrowers mostly the underdeveloped nations (WHO). The case of Serbia was a major highlight, when Structural Adjustment Loans introduced brought detrimental effects for the people of Serbia.

According to IFIs International Financial Institutions “SINCE THE BANK AND OTHER IFIs SHOW NO SIGN OF CLOSING THEIR DOORS, GENDER ACTION BELIEVES THAT IT IS VERY IMPORTANT TO ENSURE THAT THEIR LOANS ASSIST AND NOT HARM THE POOR AMONG WHOME THE MAJORITY ARE FEMALES” (Vladisavljevic and Zuckerman, pp. 3). Opposite to the statement came out in Serbia, where poor groups became jobless and with health expenditure cutbacks working women were brought to unpaid care services (Vladisavljevic and Zuckerman).

NAFTA In the last decades, NAFTA was one of the finest examples of liberal trade “free trade”. It came out as a source of development and growth for all member countries which took part in such liberal trade agreement. In the start, NAFTA established the pool of 436 million people which later on produced $12 trillion worth of goods on the annual basis (McKinney). The period of the decade 1993-2003 was tremendous projecting the real economies of scale in the NAFTA member countries. Though the starting impact was positive but later NAFTA brought worst effects on member countries and other parts of the world.

According to Economic policy institute, NAFTA created unemployment, reduced wages, and obscured labor rights in Mexico (White). This inevitably brought gang wars, drug apprehension and poverty in the Mexico district (White). Apart from the member States, rest of the world also got affected. India was found with numerous child labor cases, China with starvation wages, and Korea with slave-labor, which was all because of the weak NAFTA policy that neglected labor rights and their implementation (White).

Fair Trade When there are high business interests, exerted market pressures, and continuous exploitation of resources then reformists advice Fair Trade to stabilize such dissolving business order. Fair Trade is used to bring solidarity, a reform which remove the multinational culture and bring highest apprehension of environmental codes and obligations. When Fair Trade policies are implemented then Governments take part in the business. Their concern is to serve public and to establish the norms of social well being, which are all astray in any international conventional business order (Raynolds, Murray and Wilkinson, pp. 1-20). In a Fair Trade policy, the aims are not to meet market competition or to produce cheaper but instead quality goods and in bulk volumes.

With the execution of the Fair Trade programme, the business becomes transparent and opened for the public. Social well being and valuation of environment all becomes