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The author’s theory of trade liberalization is turning out to be untrue. From the author’s argument, he felt that trade liberalization can help the poor countries improve their economic standards through free imports and exports. According to the way things are, trade liberalization has not done better to the poor countries, but instead has made the situation worse. This is because in developing countries in Africa, for example, the importation of cheap food from the developed countries will paralyze the local production of agricultural products in the developing countries. It will lead to more import than exports in the developing countries, hence trade imbalance bringing their economy down. In Ghana, for example, the government was forced to make a turn back after it announced that the subsidized imports should be stopped in order to protect the local farmers producing poultry and rice. The international monetary fund placed pressure to Ghana to revoke its decision of trade liberalization in order to protect its local farmers in the production of local products, hence, improving the country’s gross domestic products. The country have less than one vote in the international monetary fund decision making, and the IMF control over the country’s economic decisions. The World Bank said that Ghana would be financed on a condition that they opened up agricultural markets. It has made the domestic rice production in the country collapse and the United States of America are now taking over by providing around forty percent of the Ghana imports of rice.

Q. 2

Free trade has lead to economic intimidation of the poor or developing countries by the rich ones. For example, in Colombia and the United States, local workers are forced to wake in the harsh conditions and with the inhuman pay without retirement and health benefits, due to free trade between Colombia and the US. The economic and financial crises of different developing countries are the result of free or liberalized market. It is in contrary to the expectation of the past theories of free market, and it should be completely abolished.

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