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Liberalization & Globalisation
1.1 Introduction
The conclusion of the Uruguay Round negotiations and the establishment of the World Trade Organization have contributed to the emergence of a new world order extending well beyond traditional trade matters.
It is argued, particularly in the multilateral financial institutions, and within organizations of the developed countries, that the new system will be of immense unqualified benefit to the South and that developing countries should therefore hasten to integrate themselves fully into the world economy by extensive and rapid liberalization. Integration, should not only be confined to opening up the economy to international import and export trade, but also encompass foreign direct investment (FDI) and capital flows.
Moreover, the analysis and policy conclusions of this publication also suggest a rather different programme of work from that being urged by the developed countries for UNCTAD -- the UN body centrally concerned with trade and development matters. In the view of the developed countries, UNCTAD's primary task should be that of helping developing countries speed up the process of their integration into the world economy by encouraging the adoption of appropriate national policies to liberalize their economies. It has also been proposed that UNCTAD's efforts should be focused mainly on the least developed countries.
The second point to be made is that the need for long-term economic growth is emphasized because this is essential if countries are to achieve their social and economic development goals. However, it is also a key assumption of this publication that growth itself will not necessarily resolve the problems of poverty, ineq ...