Wolf at the Door: What Happened to the Predictions of Doom?

As China prepared to accede to the World Trade Organization, analysts worried about a globalization trap, including crippling competition for its industries and farmers, a loss of sovereignty and disruption to the nation’s anticipated trajectory of growth, explains Gregory Chin, chair of the China Research Group at the Center for International Governance Innovation. Specialists fretted about every detail of possible competition, and some pessimists suggested that “WTO entry was the veritable ‘wolf at the door.’” Because of government intervention, the early apprehensions proved unwarranted: China benefited from increased global harvests and low prices for grain imports; the government prepared for competition with specialization programs based on comparative advantages of its agro-zones, as well as stimulus investments aiming to create new jobs to compensate for layoffs in the state-owned enterprises. Chin concludes that moves by a pro-active government, applying specific policy tools, helped circumvent the worst effects of competition and globalization. – YaleGlobal

Wolf at the Door: What Happened to the Predictions of Doom?

A pro-active Chinese government invested in social security, specialization and jobs programs to prepare for global competition and ease fears about WTO entry
Gregory Chin
Friday, June 10, 2011
Gregory Chin is the chair of the China Research Group at CIGI. From 2001 to 2006, Dr. Chin designed and supervised the delivery of Canada’s official development assistance to the People’s Republic of China on WTO implementation capacity building. The programs provided WTO-related technical and expert support on “transparency” capacity building, policy research on economic adjustments, state enterprise and employment reform options, legislative and regulatory drafting, agricultural and agri-food systems modernization, trade facilitation and automotive industry reorganization. Dr. Chin worked in cooperation with Chinese government officials and policy researchers at the central and local levels, and he liaised with the other donor organizations involved in providing support to China on WTO capacity building, including the WTO, the World Bank, United Nations Development Programme, Asian Development Bank, US Trade Representative, US Department of Commerce, US Department of Agriculture, the European Union and AusAID. He has written recently on China’s role in reforming the WTO, and in establishing new regional trade agreements in East Asia.
© THE CENTRE FOR INTERNATIONAL GOVERNANCE INNOVATION

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