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The top 6 WTO member benefits for Small and poor countries

The top 6 WTO member benefits for Small and poor countries

The small and poor countries join WTO in order to expand the business and achieve benefits like Raising living standards, Income opportunities, Employment opportunities, Increase production, Environment production, etc.

However joining WTO, the small and poor countries seems not so happy with the business beyond the border. There are certain reasons like:

1. Political reasons

Some of the countries are not able to obtain opportunities due to weak political structure and political instability.

2. Infrastructure

Even if there is trade opportunity in joining WTO, the lack of infrastructure (like a roadway, technology, seaports) always lags small and poor countries behind.

3. Weak negotiation

Due to the dominance of big nations in the WTO, small and poor countries always feel weak in terms of making negotiations. The proposals of small and poor countries are not considered in limelight.

4. Domestic producers

The domestic players of poor countries are not so capable enough to compete at the international level so WTO should strengthen them in order to be beneficial to trade.

5. Marginalization

The impact of marginalization still continues even a small country is a member of WTO. The weak economy is not been able to get stronger due to which small and poor countries are unhappy to expand the business.

However, to get the benefit as per provisions and principles of WTO, some recommendation can be taken by small and poor countries in their business strategy:

1. Special treatment

WTO has the principle of giving special treatment to developing nations. So small and poor countries can utilize in exporting the products to several nations with the help of several quota systems.

2. Technological support

The big countries have invented a lot and technologies have changed drastically time and again. Small and poor countries can take the support of technology through a different strategy of licensing, franchising, strategic alliances, merger, and acquisition.

3. Attract FDI

With the help of membership in WTO, small and poor countries can get benefitted from expanding globally as well as allowing the FDI and make some investment to promote a healthy economy.

4. Credibility

The small and poor countries can get the opportunity to win the credibility among the several other nations for trade enhancement.

5. Liberalization

Since the WTO has removed the barriers of trade in terms of tariff, procedure, policy among nations so small and poor countries can also export the products to different nations.

6. Dynamic and static gain

The micro and macro gain can be made by the utilization of resources that were wasted. For example, Nepal is very rich in water resources and can utilize hydropower for a business purpose. Several strategies can be adapted for getting the benefit of principles and provisions of WTO.

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