NOTE: Free essay sample provided on this page should be used for references or sample purposes only. The sample essay is available to anyone, so any direct quoting without mentioning the source will be considered plagiarism by schools, colleges and universities that use plagiarism detection software. To get a completely brand-new, plagiarism-free essay, please use our essay writing service.
One click instant price quote
... than whether anyone indeed does? The final concern about EU external policy toward developing nations is the increasing conditionality which prevails. In later versions of the Lom'e Convention the emphasis has been taken away from the (admittedly false) assumption of an equal co-operation agreement, and the principle of economic self-reliance. Instead there are several clauses in Lom'e III and IV which refer to Human Rights Conditions and reference to democracy and structural support programmes. Emphasis on civil society and even an attempt to include a clause for 'good governance' (resisted angrily by the ACP but favoured by the EU in the wake of corruption revelations) may be feted as 'ambitious' and 'sophisticated' or viewed distrustfully as neo-colonialist in nature.
Trading agreements are beginning to look more like 'tied' aid which should be approached with due care and attention paid to the relevant moral and ethical issues. INTERNAL POLICIES OF THE EU Although the policy adopted by the EU with respect to its internal affairs may on the surface bear no relation to the developing countries, such a large trading area cannot possibly hope to fundamentally change its structure or organisation without the repercussions being felt abroad, particularly by those reliant upon it for trade. With this in mind I shall devote the rest of this essay to exploring the effect of various developments in EU integration and policy. The Common Agricultural Policy is highly distortional to the global market and has accelerated the trend away from traditional colonial relations by methods of trade creation and diversion. Its global welfare effect is strongly negative (for the participating countries as well as the developing world).
The costs of its implementation are borne, surprisingly, by consumers in member states (food prices are far higher than world levels) and, unsurprisingly, by farmers outside the Union (despite having a comparative advantage in food production, they are prevented from exporting to the level considered efficient and, by some, just). On the implementation of the Single European Act of 1987, many countries raised fears of the EC (as was) becoming 'Fortress Europe', that is to say, a more protectionist Europe. The potential for erosion of existing trade benefits was the main concern. Trade creation could arise because of stronger growth within the EC, whilst trade diversion might occur as more efficient units of production were enabled in Europe through the Single Market.
It was estimated that oil producers would fare best amongst developing countries which again demonstrates the asymmetrical effect of EU policy. It was also commonly observed that the effects on the developing countries would depend not on their response or their original domestic policies, but on the EC's actions, again exposing the myth of being equal trading partners. The European Directive EC- 92 is predicted to dampen trade in manufactured goods in all developing countries, making diversification difficult and reinforcing dependence on one or two unstable goods, as well as trade and investment creation and diversion effects which will have worrying long-term implications for growth and trade. The Treaty on the European Union (Maastricht) led the way toward the kind of conditionality on trade exemplified in Lom'e III and IV; again, the effects of this will differ depending on the area of the developing country. Africa will be focused on political and bureaucratic reform, Latin America and Asia on strengthening the private sector, Euro-Med on population and immigration issues. The treaty gives the impression that the EU will move toward a more unified and coherent strategy, which will most likely take much tougher line on trade issues than the previous more discretionary system.
Whether this proves to be of benefit to the developing world remains to be seen. The general trend towards structural realignment in the EU, particularly in the face of enlargement to the south-east will mean some considerable cost in realignment policy and structural adjustment in the form of fiscal transfers. Hallett points out that this surely must mean a reduction in aid to developing countries. The accession of Spain Greece and Portugal meant the export possibilities of Euro-Med countries were significantly reduced as the EU became increasingly self-sufficient in Mediterranean products (fruit, olive oil etc. ).
The influence of internal policy on external relations was highlighted when market rationalisation's were attempted in the early 1990 s in an effort to move to common rules regarding banana imports. ACP exporters feared this represented 'the beginning of the end' for their traditional relationship with the EU, and the increasing pressure of the WTO suggests that liberalisation is going to become increasingly important in EU external relations, reducing the strength of existing preferences. CONCLUSIONS The conclusions to be drawn from this examination are far from clear. Benefit or otherwise to a third party as a direct result of external policy are difficult to gauge empirically; the result is a wealth of conflicting information.
On the one hand, the many technical, economic criticisms of the system of preferences seem on the whole to indicate that the EU is doing the developing world no real favours in stifling their economy and creating a wealth of preferential agreements which serves only to undervalue the gesture. It is a fact that for every ECU (European Currency Unit) the EU spends on aid, it spends almost two on restrictive practices; surely we cannot consider this to be helping development? Yet on the other hand, despite constant criticism of the reach of the Lom'e Conventions, the ACP countries view it most favourably, as is borne out in the increasing number of participants and potential members. This must indicate some benefit to developing countries, even if it is not as extensive as one might hope? It is my personal conclusion that the EU policy has not been of any real constructive use to the developing world; it has given with one hand and taken away with another. The distortional measures it employs and the consequent crippling of development in some countries as discussed above cannot be outweighed by the gains in evidence.
Nevertheless one of the most interesting points to draw from this analysis is that the transfer of powers within the union form a national to a community level is making the most mundane of decisions take on a new importance in the global marketplace, and it is perhaps here where we can seek to be more constructive in our development efforts in the future. BIBLIOGRAPHY. Hallett, A. J. Hughes, 'The Impact of EC- 92 on Trade in Developing Countries', The World Bank Research Observer, 9 (1), 1994. Maud, Humphrey, 'Seattle and After: Reflections on the European Union/ African, Caribbean and Pacific Negotiations', The Round Table, 354, April 2000.
Pedersen, Jorgen Date, 'The EC and the Developing Countries: Still Partners?' , from Norgaard, Pedersen and Petersen (eds. ), The European Community in World Politics, 1993. Pomfret, Richard, The Economics of Regional Trading Arrangements, 1988. Stevens, Christopher, 'EU Policy for the Banana Market: The External impact of Internal Policies', from Wallace and Wallace (eds. ), Policy Making in the European Union, Third Edition, 1996. Tsoukalis, Louis, The New European Economy Revisited, 1997
Free research essays on topics related to: developing countries, external, developing world, one hand, european union
Research essay sample on Developing Countries European Union
