CIAO DATE: 11/2008
October 2006
Institute on Globalization and the Human Condition, McMaster University
Since its creation in 1995, political activists, non-governmental organizations, and some WTO member states among others have criticized the World Trade Organization (WTO) as being "undemocratic"? But what does the term "democratic" mean when one is speaking about a legally autonomous intergovernmental organization like the WTO? Anna Lanoszka focuses on this question in this working paper. She argues that one needs to distinguish between the internal democracy of an organization, meaning its internal procedures and rules and how competition takes place based on those procedures and rules, and external democracy. External democracy refers to whether the decisions agreed to by the member states respond to the needs and concerns of their domestic populations. Professor Lanoszka suggests that these two forms of democracy are often confused, leading some to overlook some of the enhancements to internal democracy that came when the WTO replaced the temporary and weak internal organization that supported its predecessor organization, the General Agreement on Tariffs and Trade.
In this respect, she stresses the importance of judicial equality within the WTO. With each member state being legally equal to each other state, the dynamics of competition within the global trade regime have changed drastically. She sustains this argument by noting the increased influence and power of developing countries within the regime and the consequent decline in the ability of the most powerful and wealthy countries to control political and legal change to it. These changes, however, might be seen as bringing political decision-making in the WTO to a complete standstill as the wealthy states refuse to yield on entrenched positions and begin to seek regional agreements outside the WTO to address their interests. In tracing these developments, Professor Lanoszka leaves us with much to consider when it comes to the future of the global trading system as well as democracy itself.
Resource link: Autonomy and Domination within the Global Trade System: Developing Countries in the Quest for a Democratic WTO [PDF] - 467K