Journals Proceedings

Abstract

There exists in international trade relations a gulf that separates the rich from the poor, the developed, richer countries from the poorer developing countries. A more recent development indicates a third category of least developed countries (LDC), which are as the name of the category suggests, the poorest amongst the poor. There have been many reasons given for this disparity, mostly resting on the historical perspective of colonialism. Whatever the cause, it must be appreciated that the disparity is getting worse rather than better. There has been an increasing appreciation that this disparity should be closed, based on the welfare underpinnings of the Classical Trade theories, the theories of Absolute and Comparative Advantages relating to production and social notions of justice and equality. The development of the perspective that participation in international trade and growth are symbiotic and as a result, the encouragement and inclusion of developing and LDCs is crucial to closing the developmental gap is best appreciated in the second paragraph of the Preamble to the Agreement Establishing the World Trade Organisation.