Bank's Claims on WTO Doha Round Clarified
Research Shows Little at Stake in Hong Kong Ministerial
Eliminating Rich Countries Agricultural Subsidies Would Be a Net
Loss for Developing Countries
Immediate Release: November
A recent press release (November 9) Issued by the World Bank, Tariff Reform
Could Deliver Annual Global Gains of $300 Billion By 2015, Says World Bank
Study,1 was found to be highly misleading, according to the Center for
Economic and Policy Research.
The release begins by stating that Abolition of tariffs, subsidies and domestic
support programs would boost global welfare by nearly $300 billion per year by
2015, says a new World Bank research study, Agricultural Trade Reform and the
Doha Development Agenda.2
However, the study cited above also notes that:
strange to see the potential gains from the Doha round exaggerated so vastly
beyond what standard economic research indicates," said Mark Weisbrot,
Co-Director of the Center for Economic and Policy Research. "And it is even
more puzzling that people are looking to blame France for depriving the
developing world of something that this research shows to be a net loss for
developing countries (the removal of subsidies)."
Weisbrot added that since many developing countries are being asked to make
potentially costly and risky concessions in return for liberalization by the
rich countries, it would better if the World Bank made more effort to accurately
explain the results of its own research on the potential gains from this
1 The release can be found here.
2 The study, by Kym Anderson and Will Martin, is available here.
3 Anderson and Martin, Table 2.8, page 52.
4 Anderson and Martin, Table 12.20, page 384
5 Anderson and Martin, Table 1.3, page 12
6 Anderson and Martin, Table 1.5, page 14
7 Anderson and Martin, pp. 18-19