UBI - Universidade da Beira Interior
Course: International Relations
Module: Trade and International Development					Module code: 9845
Module responsible:
Module online contents:				ECTS Credits: 6
Module workload (hours)			Year/ Sem..	Compulsory [x] Optional [ ]
Semester: 160 Week: 3	Class Contact: Non-tutorials: Tutorials:	Independent learning: Assessment:	1/1
Aims 1. To offer an analytical framework to examine and discuss critically, from the Economics and International Relations approaches, the linkages between trade and development; 2. To provide an overview on the evolution of the world trade system, and GATT/WTO, from institutional, trade regulation and policies perspectives; 3. To analyse the distributional consequences of trade, the impact of trade policies on growth and development and regional trade agreements; 4. To debate the reform of the governance of the multilateral trade system; 5. To enhance the analytical, research and communication skills of students.
Learning Outcomes Upon successful completion of the module, the student is able to: 1. Examine different analytical perspectives on international trade and development, its distributional consequences and debate trade policies effects; 2. analyse the world trade multilateral system, the role of the WTO and its relevant mechanism of trade regulations in goods and services and sectoral-specific multilateral trade agreements and policies; 3. discuss the reform of the governance of the world trade system and analyse critically different perspectives; 4. apply quantitative and qualitative data provided by international organizations to identify trade and development trends and debate its structure and policy implications; 5. Use ICT and communicate effectively both in written and speaking.
Contents I - Trade and Economic Global Integration: an overview; II - Global Trade: rational and analytical approaches; III - The World Trade Organisation and the Multilateral Trade Agreements; IV - Trade and Development: policies and challenges.
General Reading Hoekman, B. M. and Kostecki, M. M., 2010. The Political Economy of the World Trading System: The WTO and Beyond, 3. Ed., USA, Oxford University Press. Hoekman, B. M., Mattoo, A. and English, F., 2002. Development, Trade, and the World Trade Organisation: A Handbook, World Bank. Marjit, Sugata, 2008. International Trade and Economic Development Essays in Theory and Policy, USA, Oxford University Press. Krugman, Paul and Maurice Obstfeld. 2006. International Economics; Theory and Practice. Seventh Edition. Pearson Addison Wesley.
Assessment Continuous Assessment Grade (CAG): Take-home (20%); one 2000-word essay (55%); oral presentation based on word essay (15%); class participation (10%). CAG < 6 failed; CAG ≥ 6 < 10 admitted to final exam; CAG ≥ 10 passed (in a scale of 20). Final Exam Grade: continuous assessment grade (40%); exam (60%) ≥ 10 passed. Attendance requirements: ≥ 80 % of all the class sessions.
Learning methods The weekly program is organized in one two-hour lecture and one-hour tutorial. Students must attend both lectures and tutorials. Lectures combine a structured transmission of knowledge and analytical perspectives of IR on trade and development, institutions and policies illustrated by case studies. The tutorials aim to stimulate students' presentations and debate on key issues raised in the lectures and assigned for tutorials. It is expected that students produce well-informed arguments grounded on previous work on readings, video-conferences and data gathered from international and think-tank organisations and experts' writings in newspapers.
Pre-requisite module No pre-requisites required.

1. Course description

The fundamental issue pursued by the module is whether and how international trade system and trade agreements can promote global economic development. Two perspectives stem from the evolution and contribution of the international trade regime created post-WW II for the economic growth and development.

One perspective focuses on the positive effects of six decades of trade liberalization and developing countries integration in the world economy, underlying higher growth in incomes, technology transfer, longer life expectancy, higher educational attainments, and poverty reduction.

The second highlights the imbalances of free trade and globalization and claims for a “fair trade for all”, stressing the inequalities and costs of current trade regime and national structural adjustment policies that developing and poor countries are subjected to.

The complete failure of the Doha trade negotiations in the summer of 2008 shed a light on critical issues about trade-international development interaction and tensions associated to power relations, namely concerning economic and political rationales. Despite well established economic propositions supporting free trade between countries, arguing that unilaterally free trade policy will in most circumstances be highly beneficial, political factors are seen as more important than economic arguments by both rich and poor countries.

How should the positions of developed and developing economies be understood in their trade negotiations? How important is trade policy to face the world and national development challenges imposed by globalisation? Is the current international trade governance model suitable to tackle the dynamics of the economic globalization? To what extend is the WTO shaped by the emerging economic powers and how does their influence affect the development agenda?

The course addresses these crucial aspects of international trade and global development approaching four topics.

The first provides a brief long-run overview of international trade structural changes centered on figures, trends and drivers, as well as on the evolution of global trade supported by Bretton Woods architecture, particularly the role of the WTO.

The second offers the rationale and analytical approaches to support intellectual understanding and critical thinking about global trade and its dynamics. The traditional approaches, new trade theory and critical perspectives are used as theoretical tools to address the selected issues.

The third topic focuses on the WTO, its objectives, functioning and regulatory and policy modus operandi. In particular, the emphasis is oriented to trade in goods and services, sectoral-specific multilateral trade agreements, namely agricultural; textile and clothing; information technology and intellectual property rights, and crucial aspects concerning developing and poor countries, economies in transition and regional trade blocks:

Finally, issues related with development assume the central place. The analysis and debate on world trade and global and national imbalances generated by trade are promoted. Institutions, rules of game and policies and how these controversial aspects challenge the positive-sum game trade argument will be debated. Some important actors are identified and debate their policies, such as aid, GSPs, EPAs, to promote regional and national trade capacity oriented to a more balanced and sustainable trade system and global development performance.

2. Contents

I - Trade and Economic Global Integration

1.1 Global Trade: figures, trends and drivers

1.2 Global Trade System: from the GATT to World Trade Organisation

II - Global Trade: rational and analytical approaches

2.1 Traditional approaches

2.2 New trade theory and dynamic effects

2.3 Critical perspectives

III - The World Trade Organisation and the Multilateral Trade Agreements

3.1 The World Trade Organisation: scope, functions and accession

3.2 Trade in Goods and Services

3.3 Sectoral-Specific Multilateral Trade Agreements

3.4 Integrating Developing Countries, Economies in Transition and Regional Trade Blocks

IV - Trade and Development: policies and challenges

4.1 World Trade and Global Imbalances: addressing the development

4.2 The United Nations Conference on Trade and Development (UNCTAD): selected policies

4.3 European Union: selected policies

4.4. World Bank: selected policies

4.5 Doha Round: trade and development in debate

3. References

HOEKMAN, B. M. and KOSTECKI, M. M., (2010). The Political Economy of the World Trading System: The WTO and Beyond, 3. Ed., USA, Oxford University Press.

HOEKMAN, B., MATTOO, A, and ENGLISH, P. (eds), (2002). Development, Trade, and the WTO. A Handbook, Washington, DC, World Bank.

MARJIT, Sugata, (2008). International Trade and Economic Development Essays in Theory and Policy, USA, Oxford University Press.

KRUGMAN, Paul and OBSTFELD. Maurice (2006). International Economics; Theory and Practice. Seventh Edition. Pearson Addison Wesley.

STIGLITZ, J. and CHARLTON, A., (2006). Fair Trade for All: How Trade Can Promote Development, New York, Oxford University Press.

WTO, (2008). The World Trade Report 2008. Trade in a Globalised World, Geneve, World Trade Organisation.

WTO, (2007). World Trade Report 2007. Six Decades of Multilateral Trade Cooperation: What have we learnt?, Geneve, World Trade Organisation.

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