-
Essay / midterm exam - 670
The General Agreement on Tariffs and Trade (GATT) was created in 1946, just after the end of World War II. The GATT emerged as the means to promote “free trade”, considered essential to peace. Its goal was to persuade countries to dismantle their protectionist systems by reducing and then eliminating tariffs for member states. Many argue that trade between states that produce based on the idea of comparative advantage would increase global interdependence and increase the price of aggression. Thus, interdependence requires states to cooperate with each other. Economic self-sufficiency is seen as the cause of the war. From the beginning, the GATT was an institution that promoted liberal ideas. GATT was created with the assumption that free trade would create greater well-being for people. Thus, interstate entities should be able to compete and cooperate freely, without government intervention. Protectionism is considered inadequate for the economy because it increases the price of the product and thus promotes unfair competition. After the creation of GATT, the post-war period was peaceful. Trade and economic growth increased. Europe was rebuilt and caught up with the United States, as did Japan. GATT achieved a substantial reduction in tariffs through numerous rounds of negotiations. Personal wealth and the general well-being of society increase through free trade, particularly in manufacturing. Competition between businesses also reduces product costs and increases consumption. Thus, by reducing tariffs, GATT reinforces the liberal idea of free markets and greatly improves personal wealth. On the other hand, GATT and WTO finally developed a mechanism to regulate trade. This development is special...... middle of paper ......d as an institution aimed at bringing peace through prosperity to the devastated countries after the end of World War II. Throughout the year, GATT helps narrow the economic divide between many countries. However, with the incorporation of more countries, the GATT and WTO contributed to an unequal distribution of income. It is clear that the GATT does not help the Church or its constituents to achieve new objectives, nor to resolve the question of fair wages or fair prices. The division of wealth between developed and developing countries clearly indicates that the Church has not been able to influence the government to adopt better public policy to resolve these problems. However, there are church organizations that help workers address equality issues. So while the WTO may not be helping the Church achieve its goals now, things could change in the future..