Russia will be the 156 country to join the World Trade Organization. The negotiations have been going on for since the break-up of the Soviet Union. Russia is the last major economic power to join the WTO and the only G-8 member that was not a WTO member. This is the biggest step in trade since China became a member in 2001. Russia seeing the powerhouse of trading benefits granted to China is hoping to gain some of the same gains. But some have their doubt. Many foreign investors are taking this move cautiously but are still hopeful that it will make trading with the Russian Federation easier, safer, and more predictable. Time will tell. Nevertheless, this might bring some good news for the Russian consumer as the tariffs will be lower it is hoped that prices will come down and desired products might be more abundant.
The World Trade Organization is part of the World Governance system. Not to be confused with World Government. Now it is hard for me to distinguish the difference but I will try to give "their" logic. In their words "global governance is not global government; it is not a single world order; (thank goodness!) it is not a top-down, hierarchical structure of authority. It is the multi-level collection of governance-related activities, rules, and mechanisms, formal and informal, public and private, existing in the world today." These are considered pieces of global governance.
The Commission of Global Governance defined governance as "the sum of the many ways individuals and institutions, public and private, manage common affairs. It is a continuing process through which conflicting or diverse interests may be accommodated and cooperative action may be taken. It includes formal...as well as informal arrangements that people and institutions have agreed to or perceive to be in their interest." Well, that hardly sounds like rule from above. Maybe that is why Russia took its time joining a world governance organization that can prescribe rules and enforce them.
Rosenau tried to clear-up the confusing difference between governance and government. He stated, "Governance, is a more encompassing phenomenon than government. It embraces governmental institutions, but it also subsumes (to bring under rule) informal, nongovernmental mechanisms whereby those persons and organizations within its purview (the range of operation, authority, or concern) need to move ahead, satisfy needs, and fulfill wants."
Globalization has developed, and gained wider acceptance, due to the expansion of trade. The liberal economic theory states that trade is the engine of economic growth. Although, some of the anti-globalist argue that the WTO's power to regulate can have strong consequences having authoritative measures on national sovereignty. And that is definitely true. The WTO is "a one-state, one-vote organization, which decision making is done by consensus. But the size of the market is the primary source of power and weaker states are forced into agreement."
Most contentious negotiations are over policy issues concerning intellectual property and services.
Russia under President Putin in 1999 was leaning towards more nationalistic tendencies and concerned itself with stronger ties and development of the Shanghai Cooperation Organization (formally the Shanghai Five, an organization with Russia and three Central Asian states that met in Shanghai aligning to resist undue U.S. influence. China referred to Russia as "its strategic partner.") to curb growing US influence at that time. "Instead of trying to integrate into the global economic system, Russia had a preference for being a distinct regional power that can offer alternative economic and military institutions (Economist 2009)."
So the news of Russia joining a World Governance Organization is interesting to say the least. Everyone is hopeful that it will be different with Putin this time but doubtful. This is certainly a good beginning, even though the Director-General Lamy is playing it down that Russia's entry is not a "big bang" accession. Seems understandable that Russia would want in on somekind economic recovery through open trade.
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