INTRODUCTION
This world is ever changing so its institutions, values of people, their priorities, need,
rules of mutual co-existence, its boundaries and its way of life. World is ever changing
because changes are inevitable. These changes come in a chain, that is to say the norm
and practices which were existing in the ancient time are again becoming contemporary
and will become outdated in times to come. It is a circle. Take the example of our ancient
Indian principle of Vasudhav Kutumbakam which has again become contemporary if
we will look in to the phenomenon of Globalization. It is an umbrella term for a
complex series of economic, social, technological, cultural and political changes seen as
increasing interdependence, integration and interaction between people and companies in
disparate locations. The term "globalization" is used to refer to these collective changes
as a process, or else as the cause of turbulent change.
The pattern of globalization as it is exists today is not an inevitable trend. It is at least in
part the product of policy choice. The institutions like IMF, WORLD BANK and WTO
are the known carrier of globalization. World Trade Organization, which came up into
existence to develop a set of rules for world trade and to provide a forum for members to
negotiate these rules, today is the chief promoter of globalization in the world affecting
all its dimensions. There seems a substantial impact of WTO and its policies over the
legal, social, and political and most importantly economic pattern of both developed and
developing countries as well as in LDCs (least developed countries) where a whole
institutional and normative setback can be witnessed.
All these developments have raised several issues all over the world and people are
questioning the need of WTO and need of globalization as such. An indepth analysis is
required to understand to understand the facets of both, globalization and WTO affecting
the law and society.
Lets have a look.
RESEARCH METHODOLOGY
AIMS AND OBJECTIVES
The paper has very clear aim to show the impact of Globlization and of WTO over the
laws and the society. The objectives of the paper is to dissect the pros and cons of
globalization, its need its effects its, and its various dimensions. Dealing further it will
analyze the emergence of WTO and its the changes brought by it in the real world.
SCOPE AND LIMITATIONS
The scope of the paper lies, only to contextualize the concept of Globlalization and
institution of WTO in reference to law and society. Limitation is as to the method of
discussion, where it require the comparative analysis of Globlization, WTO and the
society.
METHOD OF DISCUSSION
The analytical as well as descriptive methods have been followed throughout the research
paper.
MODE OF CITATION
Uniform mode of citation has been followed.
CHAPTER TWO
GLOBALIZATION VANISHING BOUNDARIES
Globalization is a term that is used in many ways, but the principal underlying idea is the
progressive integration of economies and societies. It is driven by new technologies, new
economic relationships and the national and international policies of a wide range of
actors, including governments, international organizations, business, labour and civil
society. Broadly speaking, the process of globalization has two aspects. The first refers to
those factors - such as trade, investment, technology, cross-border production systems,
flows of information and communication - which bring societies and citizens closer
together.
The second refers to policies and institutions, such as trade and capital market
liberalization, international standards for labour, the environment, corporate behaviour
and other issues, agreements on intellectual property rights, and other policies pursued at
both the national and international level which support the integration of economies and
countries.1
DEVELOPMENT
Quite a few of these ideas originated in India, China, Greece and Rome. And undoubtedly
there was significant cross-fertilization between these ancient civilizations, alongside the
vanished memories of Babylon and Egypt. Evidence of such enriching exchanges are
demonstrated in the writings of Megasthenes, the 4th century B.C. Greek Ambassador to
India, or Chinese scholar Hieun Tsang, who visited India's 2,000 tutor-staffed Nalanda
University a millennium later. At the time, Europe, as we should recall, was only
beginning to settle down after the trans-territorial forays of the Burgundians, the
Ostrogoths and their energetic cousins. 2
Although the term "globalization' was coined in the latter half of the twentieth century,
and the term and its concepts did not permeate popular consciousness until the latter half
of the 1980's. As a term 'globalization' has been used as early as 1944, but economists
began applying it around 1981. Theodore Levitt is usually credited with its coining
through the article he wrote in 1983 for the Harvard Business Review entitled
"Globalization of Markets". various social scientists have tried to demonstrate continuity
between contemporary trends of globalization and earlier periods. Liberalization in the
19th century is often called "The First Era of Globalization", a period characterized by
rapid growth in international trade and investment, between the European imperial
powers, their colonies, and, later, the United States.
The "First Era of Globalization" began to break down at the beginning with the first
World War, and later collapsed during the gold standard crisis in the late 1920s and early
1
2
http://www.rmi.org/sitepages/pid842.php
, The Three Rounds of Globalization Ashutosh Sheshabalaya ,The Globalist ,October 19, 2006
1930s. Countries that engaged in that era of globalization, including the European core,
some of the European periphery and various European American and Oceanic offshoots,
prospered. Inequality between those states fell, as goods, capital and labour flowed freely
between nations.
Globalization in the era since World War II has been driven by advances in technology
which have reduced the costs of trade, and trade negotiation rounds, originally under the
auspices of GATT, which led to a series of agreements to remove restrictions on free
trade. The Uruguay round (1984 to 1995) led to a treaty to create the World Trade
Organization (WTO), to mediate trade disputes. Other bi- and trilateral trade agreements,
including sections of Europe's Maastricht Treaty and the North American Free Trade
Agreement (NAFTA) have also been signed in pursuit of the goal of reducing tariffs and
barriers to trade.
VARIOUS DIMENSIONS OF GLOBALIZATION
Globalization is a multifaceted phenomenon and it has a direct impact on the world as a
whole, affecting its various institutional set up and values. We can discuss these things in
the following points Economically
Increase in international trade at a much faster rate than the growth in the world
economy.
Increased role of international organizations such as WTO, WIPO, IMF that deal
with international transactions.
Culturally
Spread of local consumer products (e.g., food) to other countries (often adapted to
their culture)
World-wide sporting events such as FIFA World Cup and the Olympic Games.
Technical/legal
Increase in the number of standards applied globally; e.g. copyright laws and
patents
The push by many advocates for an international criminal court and international
justice movements ( the International Criminal Court and International Court of
Justice respectively).
Politically
The Uruguay round of GATT which began in 1986 initially provided a limited forum to
negotiate the response to globalization, and in the initial year it did not seem to be getting
very far. But the collapse of communism provided an additional impetus to globalization.
This in turn added a sense of urgency to the search for new system with new global rules.
The discussion on world trade shifted quietly, but significantly away from ideological
issue of free markets, and towards arriving at consensus on a new set of rules for world.
WTO as a fora has beed extending the principles of globalization all over the world. It
will be to have a over view knowledge of the WTO before analyzing the impact of
globalization over law and society. 3
CHAPTER THREE
WORLD TRADE ORGNIZATION AN OVERVIEW
DEVELOPMENT
The World Trade Organization came into being in 1995. One of the youngest of the
international organizations, the WTO is the successor to the General Agreement on
Tariffs and Trade (GATT) established in the wake of the Second World War.
So while the WTO is still young, the multilateral trading system that was originally set up
under GATT is well over 50 years old.
The past 50 years have seen an exceptional growth in world trade. Merchandise exports
grew on average by 6% annually. Total trade in 1997 was 14-times the level of 1950.
GATT and the WTO have helped to create a strong and prosperous trading system
contributing to unprecedented growth.
The system was developed through a series of trade negotiations, or rounds, held under
GATT. The first rounds dealt mainly with tariff reductions but later negotiations included
other areas such as anti-dumping and non-tariff measures. The last roundthe 1986-94
Uruguay Roundled to the WTOs creation.
The negotiations did not end there. Some continued after the end of the Uruguay Round.
In February 1997 agreement was reached on telecommunications services, with 69
governments agreeing to wide-ranging liberalization measures that went beyond those
agreed in the Uruguay Round.
In 2000, new talks started on agriculture and services. These have now been incorporated
3
into a broader work programme, the Doha Development Agenda (DDA), launched at the
fourth WTO Ministerial Conference in Doha, Qatar, in November 2001.
The agenda adds negotiations and other work on non-agricultural tariffs, trade and
environment, WTO rules such as anti-dumping and subsidies, investment, competition
policy, trade facilitation, transparency in government procurement, intellectual property,
and a range of issues raised by developing countries as difficulties they face in
Implementing the present WTO agreements.
The deadline for the negotiations is 1 January 2005
THE ORGANIZATION4
FUNCTIONS
The WTOs overriding objective is to help trade flow smoothly, freely, fairly and
predictably. It does this by:
Administering trade agreements
Acting as a forum for trade negotiations
Settling trade disputes
Reviewing national trade policies
STRUCTURE
FACT FILE
The WTO
negotiating membership.
Created
negotiations (1986-94)
Uruguay
Round
13 October 2004)
Budget: 169 million Swiss francs
for 2005
Secretariat staff: 630
Head:
by:
Lamy
Director-General,
Pascal
MINISTERIAL CONFERENCE.
Below this is the General Council (normally
ambassadors and heads of delegation in Geneva, but
sometimes officials sent from members capitals)
The General Council also meets as the Trade
Policy Review Body and the Dispute Settlement
Body. At the next level, the Goods Council,
Services Council and Intellectual Property
(TRIPS) Council report to the General Council.
Numerous specialized committees, working groups and working parties deal with
the individual agreements and other areas such as the environment, development,
membership applications and regional trade agreements.
The WTO Secretariat, based in Geneva, has around 630 staff and is headed by a director
general.
WTO AGREEMENTS5
Three main agreement of WTO :
(1) The general agreement of tariff and trade (GATT 1994)
(2) The general agreement on trade in services (GATS)
(3) Trade related intellectual property rights (TRIPS)
A brief descriptionGOODS
It all began with trade in goods. From 1947 to 1994, GATT was the forum for negotiating
lower customs duty rates and other trade barriers; the text of the General Agreement spelt
out important rules, particularly non-discrimination. Since 1995, the updated GATT has
become the WTOs umbrella agreement for trade in goods. It has annexes dealing with
specific sectors such as agriculture and textiles, and with specific issues such as state
trading, product standards, subsidies and actions taken against dumping.
http;//www.wto.org
SERVICES
Banks, insurance firms, telecommunications companies, tour operators, hotel chains
and transport companies looking to do business abroad can now enjoy the same
principles of freer and fairer trade that originally only applied to trade in goods.
These principles appear in the new General Agreement on Trade in Services (GATS).
WTO members have also made individual commitments under GATS stating which of
their services sectors they are willing to open to foreign competition, and how open those
markets are.
INTELLECTUAL PROPERTY
The WTOs intellectual property agreement amounts to rules for trade and investment in
ideas and creativity. The rules state how copyrights, patents, trademarks, geographical
names used to identify products, industrial designs, integrated circuit layout-designs and
undisclosed information such as trade secretsintellectual propertyshould be protected
when trade is involved.
DISPUTE SETTLEMENT
The WTOs procedure for resolving trade quarrels under the Dispute Settlement
Understanding is vital for enforcing the rules and therefore for ensuring that trade flows
Smoothly. Countries bring disputes to the WTO if they think their rights under the
agreements are being infringed. Judgments by specially-appointed independent experts
are based on interpretations of the agreements and individual countries commitments.
The system encourages countries to settle their differences through consultation. Failing
that, they can follow a carefully mapped out, stage-by-stage procedure that includes the
possibility of a ruling by a panel of experts, and the chance to appeal the ruling on legal
grounds.
POLICY REVIEW
The Trade Policy Review Mechanisms purpose is to improve transparency, to create a
greater understanding of the policies that countries are adopting, and to assess their
impact. Many members also see the reviews as constructive feedback on their policies.
All WTO members must undergo periodic scrutiny, each review containing reports by the
country concerned and the WTO Secretariat.
FUNDAMENTAL PRINCIPLES OF WTO6
There are two main principles of WTO which are common thread between all the main
agreements of WTO, viz. GATT1994, GATS, TRIPS. They are :
(a) Principle of Most Favoured Nation which says that countries can not normally
discriminate between there trading partners. Thus the custom duty and the trading
rules applicable to the one member state will be generally extended to the other
member states of WTO.
(b) Principle of National Treatment it says that once the goods have come into the
country, they must be accorded national treatment as at par with the domestically
produced goods, in all aspects.
SCOPE OF WTO
To know the impact of WTO in a better manner its better to know its scope beforehand
The WTO is designed to provide a common institutional framework for the conduct of
trade relations among its members relating to multilateral and plurilateral agreements
arising from the Uruguay Round.
The multilateral agreements are binding on all members of WTO.
The plurilateral agreements, whilst administered by the WTO, are only binding on their
signatories.
WTO CONFERENCES
extra time for developing countries to fulfil their commitments (in many of the
WTO agreements).
provisions for various means of helping developing countries (e.g. to deal with
commitments on animal and plant health standards, technical standards, and in
strengthening their domestic telecommunications sectors).
in any WTO dispute and for giving them legal counsel. The service is offered by the
WTOs Training and Technical Cooperation Institute. Developing countries
regularly make use of it.
Least-developed countries: special focus
The least-developed countries receive extra attention in the WTO. All the recognize that
they must benefit from the greatest possible flexibility, and better-off members must
make extra efforts to lower import barriers on leastdeveloped countries exports. Since
the Uruguay Round agreements were signed in 1994, several decisions infavour of least
developed countries have been taken. Meeting in Singapore in 1996, WTO ministers
agreed on a Plan of Action for Least- Developed Countries. This included technical
assistance to enable them to participate better in the multilateral system and a pledge
CHAPTER FOUR
CULTURE
INCOME
&SOCIAL
PROTECTION
WORKING
CONDITIONS
LIFE
SOCIAL
DIMENSI
ONS OF
GLOBLIZ
ATION
WORK OF
PEOPLE
FAMILIES
EMPLOYMENT
SOCIETIES
many other areas of corporate law. In response to this internationalization, and in order to
serve giant, transnational companies, law firms are globalizing their practice. The
biggest firms are merging across borders, creating mega practices with several thousand
professionals in dozens of countries. There are
Technology has now created the possibility and even the likelihood of a global culture.
The Internet, fax machines, satellites, and cable TV are sweeping away cultural
boundaries. Global entertainment companies shape the perceptions and dreams of
ordinary citizens, wherever they live. This spread of values, norms, and culture tends to
promote Western ideals of capitalism. Will local cultures inevitably fall victim to this
global "consumer" culture? Will English eradicate all other languages? Will consumer
values overwhelm peoples' sense of community and social solidarity? Or, on the contrary,
will a common culture lead the way to greater shared values and political unity? All
these questions have direct answers. The telecommunication, growing importance of
English, capitalistic consumer values and so on, are the changes taken place because of
the new ideology of globalization.
to laborers, provoking a strong backlash from civil society. For me because of this there
are serious threat to the sustainable development in all over the world.
impact of these levels of economic activity, but will also lose any environmental
benefits. The aggregate impact will therefore depend on the sectors, products and
countries involved. The WTO Committee on Trade and Environment was
established, when the WTO was founded, to review the relationship between
environmental protection and trade rules and to identify possible reforms but, ten
years on, has reached no conclusion on anything. Another major area of
disagreement in the tradeenvironment arena concerns the WTO treatment of
multilateral environmental agreements (MEAs) or treaties. Several important
agreements, such as the Montreal Protocol on ozone-depleting substances, the
Convention on International Trade in Endangered Species (CITES), or the
Cartagena Protocol on Biosafety, which regulates trade in GM products, contain
trade measures, such as a requirement for licences before trade can be permitted,
or complete bans on trade in controlled products with non-parties or noncomplying parties to the agreement.
To me there seems the inherent conflict between the WTO trade objectives and
the concerns of the environments. The parties which are parties of both
WTO, TRIPS on the one hand and, of Kyoto, Catagena And CBD on the
other hand are in dilemma to implement them.
CHAPTER FIVE
9
CONCLUSION
So we have seen that globalization does not only talk about economics but also about
people their rights in day to day life and the society as a whole. WTO on the other
hand has impact beyond the members even thought of when they formed this
forum. When WTO came the idea was influenced by the David Recardos theory of
comparative advantage where the principle that each nation should produce what
it is best at, and trade it for what another is best at, was propounded. Though the
theory formed the genesis for the formation of free trade regime of WTO, but if we
will see in todays context, then we can say that the WTO has moved mush forward
from the traditional normative barriers and affecting the each and every facet of life
of the modern world. WTO has become omnipresent and omnipotent institution
today. One can not deny that the phenomenon of Globalization did more good than
bad, but the problem lies with the proportion in which and the people to which it
has benefited. Globalization is here to stay and it is the hard fact no one can deny, it
is up to the nation governments to filter its benefits by regulating their policies
suitable for them and answering the needs of their people.
TABLE OF CONTENTS
CHAPTER 1 - INTRODUCTION
RESEARCH METHODOLOGY
CHAPTER 2- GLOBILIZATION- VANISHING BOUNDARIES
DEVELOPMENT
VARIOUS DIMENSIONS ON GLOBILIZATION
FROM GLOBILIZATION TO WTO.
CHAPTER 3 WTO- AN OVERVIEW
DEVELOPMENT
THE ORGANISATION
FUNCTIONS
STRUCTURE
MINISTERIAL CONFERENCES
WTO AGREEMENTS
FUNDAMENTAL PRINCIPLS OF WTO
SCOPE OF WTO
WTO CONFERENCES
WTO AND DEVELOPING COUNTRIES WITH SPECIAL
REFERENCES TO INDIA
STORY OF WTO
CHAPTER 4- GLOBILIZATION, WTO AND ITS IMPACT ON LAW AND
SOCIETY- POSITIVE AND NEGATIVE
CHAPTER 5 CONCLUSIONS
BIBLIOGRAPHY
HUMANITY
HAS
REACHED
THE
LIMITS
OF
AN
ERA
OF
THE
THE
RULING
ACCOUNTABLITY.
ELITES
THEY
SHILDED
RESPECT
FROM
AN
PUBLIC
OUTMODED,