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Fair Trade for All: How Trade Can Promote Development
Winner of the Nobel Prize in Economics and author of the New York Times bestselling book Globalization and Its Discontents , Joseph E. Stiglitz here joins with fellow economist Andrew Charlton to offer a challenging and controversial argument about how globalization can actually help Third World countries to develop and prosper.
In Fair Trade For All , Stiglitz and Charlton address one of the key issues facing world leaders today--how can the poorer countries of the world be helped to help themselves through freer, fairer trade? To answer this question, the authors put forward a radical and realistic new model for managing trading relationships between the richest and the poorest countries. Their approach is designed to open up markets in the interests of all nations and not just the most powerful economies, to ensure that trade promotes development, and to minimize the costs of adjustments. The book illuminates the reforms and principles upon which a successful settlement must be based.
Vividly written, highly topical, and packed with insightful analyses, Fair Trade For All offers a radical new solution to the problems of world trade. It is a must read for anyone interested in globalization and development in the Third World.
In Fair Trade For All , Stiglitz and Charlton address one of the key issues facing world leaders today--how can the poorer countries of the world be helped to help themselves through freer, fairer trade? To answer this question, the authors put forward a radical and realistic new model for managing trading relationships between the richest and the poorest countries. Their approach is designed to open up markets in the interests of all nations and not just the most powerful economies, to ensure that trade promotes development, and to minimize the costs of adjustments. The book illuminates the reforms and principles upon which a successful settlement must be based.
Vividly written, highly topical, and packed with insightful analyses, Fair Trade For All offers a radical new solution to the problems of world trade. It is a must read for anyone interested in globalization and development in the Third World.
352 pages, Hardcover
First published January 1, 2005
26 people are currently reading
594 people want to read
About the author
Joseph E. Stiglitz
247 books1,846 followersJoseph Eugene Stiglitz, ForMemRS, FBA, is an American economist and a professor at Columbia University. He is a recipient of the Nobel Memorial Prize in Economic Sciences (2001) and the John Bates Clark Medal (1979). He is also the former Senior Vice President and Chief Economist of the World Bank. He is known for his critical view of the management of globalization, free-market economists (whom he calls "free market fundamentalists") and some international institutions like the International Monetary Fund and the World Bank.
In 2000, Stiglitz founded the Initiative for Policy Dialogue (IPD), a think tank on international development based at Columbia University. Since 2001, he has been a member of the Columbia faculty, and has held the rank of University Professor since 2003. He also chairs the University of Manchester's Brooks World Poverty Institute and is a member of the Pontifical Academy of Social Sciences. Professor Stiglitz is also an honorary professor at Tsinghua University School of Public Policy and Management. Stiglitz is one of the most frequently cited economists in the world.
In 2000, Stiglitz founded the Initiative for Policy Dialogue (IPD), a think tank on international development based at Columbia University. Since 2001, he has been a member of the Columbia faculty, and has held the rank of University Professor since 2003. He also chairs the University of Manchester's Brooks World Poverty Institute and is a member of the Pontifical Academy of Social Sciences. Professor Stiglitz is also an honorary professor at Tsinghua University School of Public Policy and Management. Stiglitz is one of the most frequently cited economists in the world.
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Displaying 1 - 18 of 18 reviews
May 25, 2012
This insightful book investigates the deficiencies in world trade policy institutions in promoting and supporting development in developing countries. It focuses in the main on the World Trade Organisation (WTO) and the failings of this institution which heavily favours developed countries from a process perspective. Developed countries are at a distinct advantage from not only their market size, but their ability to investigate and quantify the impacts of proposed trade policy nationally and internationally. This bias extended to completely undermine the Doha 'development' Round as the developed countries largely dictated the agenda and outcomes of the talks and skewed these towards tackling issues relevant to themselves.
Stiglitz and Charlton contest the assumption that trade liberalisation is uniformly development enhancing for all countries in all situations. They investigate this basic economic theory and argues that the assumptions it is based upon (perfect risk and capital markets; full employment) do not often characterised the internal situation for developing countries. The impact of even short term unemployment on a country's poor is exacerbated where high unemployment already exists. The ability of both workers and companies to adapt to changed trade conditions is heavily constrained by extremely low availability of credit. Therefore, trade liberalisation in itself is not the panacea for development where income displacement is not able to be sufficiently supported by social safety nets.
It is argued that a range of policy mixes has lead to development in a range of countries, particularly South East and East Asia. Instead of accepting the theory of comparative advantage as static, these Asian nations did not focus on producing and exporting the mainly agricultural products for which they had at the time a comparative advantage. They focused on developing industries a range of other industries firstly through import substitution, followed by exporting support. In the long term, this has paid dividends through the success of their increasingly sophisticated manufacturing industries.
The book proposes what a true development round should look like and suggests objective measures for evaluating the effectiveness of proposed trade policy on development. It outlines the deficiencies of some current methods of measurement which due to aggregation do not capture the full development picture and may glaze over the impact on the world's poor.
A true development round should also address the relatively high adjustment costs experienced by developing countries in implementing trade policy. This is a function of relatively weak institutions and the opportunity cost of investment in this area. It is argued that in many cases the implementation of trade policy forced on developing countries through the biased mechanisms of the WTO has even further negative impact on development as it ties up funds which would otherwise be used by governments domestically in addressing this issue. Therefore, it is argued that if there is to be a true focus on development in the WTO, technical and monetary assistance needs to be forthcoming in assisting developing countries with the costs of adjusting to conform with new policy.
Overall, a very interesting book for those concerned with effective development policy. It can be a bit heavy going at times but well worth it as you are provided with a holistic perspective of the impacts of 'development' policy and pointed in the right direction for remedying this in the future. Highly recommended!
Stiglitz and Charlton contest the assumption that trade liberalisation is uniformly development enhancing for all countries in all situations. They investigate this basic economic theory and argues that the assumptions it is based upon (perfect risk and capital markets; full employment) do not often characterised the internal situation for developing countries. The impact of even short term unemployment on a country's poor is exacerbated where high unemployment already exists. The ability of both workers and companies to adapt to changed trade conditions is heavily constrained by extremely low availability of credit. Therefore, trade liberalisation in itself is not the panacea for development where income displacement is not able to be sufficiently supported by social safety nets.
It is argued that a range of policy mixes has lead to development in a range of countries, particularly South East and East Asia. Instead of accepting the theory of comparative advantage as static, these Asian nations did not focus on producing and exporting the mainly agricultural products for which they had at the time a comparative advantage. They focused on developing industries a range of other industries firstly through import substitution, followed by exporting support. In the long term, this has paid dividends through the success of their increasingly sophisticated manufacturing industries.
The book proposes what a true development round should look like and suggests objective measures for evaluating the effectiveness of proposed trade policy on development. It outlines the deficiencies of some current methods of measurement which due to aggregation do not capture the full development picture and may glaze over the impact on the world's poor.
A true development round should also address the relatively high adjustment costs experienced by developing countries in implementing trade policy. This is a function of relatively weak institutions and the opportunity cost of investment in this area. It is argued that in many cases the implementation of trade policy forced on developing countries through the biased mechanisms of the WTO has even further negative impact on development as it ties up funds which would otherwise be used by governments domestically in addressing this issue. Therefore, it is argued that if there is to be a true focus on development in the WTO, technical and monetary assistance needs to be forthcoming in assisting developing countries with the costs of adjusting to conform with new policy.
Overall, a very interesting book for those concerned with effective development policy. It can be a bit heavy going at times but well worth it as you are provided with a holistic perspective of the impacts of 'development' policy and pointed in the right direction for remedying this in the future. Highly recommended!
October 22, 2007
It’s always great to pick up a new work by an author and realize he’s done exactly what you hoped he would do. Such was my feeling when I started reading Joseph Stiglitz’s new book, written with Andrew Charlton.
In Stiglitz’s lst work, entitled Making Globalization Work , he mostly rehashed criticism from Globalization and its Discontents, leading to my bad review. Basically, he detailed why current patterns of globalization aren’t working, and stopped there.
Finally, in the most recent piece, Fair Trade for All, Stiglitz gets down to details: If he were benevolent emperor of the world, how would he run the WTO and the next round of negotiations? The book actually ventures into lots of messy, policy-wonkish details, so readers without a basic knowledge of economics might be a bit lost. All this messiness is actually kind of liberating to read: an economist actually arguing (with data) that particular countries and cultures require particular development strategies, not some grand philosophy a la “The Washington Consensus”. It reminds me a bit of Jeffery Sachs’ concept of “clinical economics”.
I can’t pretend to pass judgment on all of Stiglitz and Charlton’s suggestions, for I’m not an economist. The central argument is that in a true “Development Round” of WTO negotiations, proposals should maximize gains to poorer countries. Provocatively, they argue that “all WTO members commit themselves to providing free market access in all good to all developing countries poorer and smaller than themselves.” This is, of course, the complete opposite of the current unjust trading system. As a corollary, they present good evidence that it is mainly via increased South-South trade that least developed countries can lift themselves up.
At one point in a parenthetical statement they express regrets about the inclusion of “the infamous Chapter 11 of Nafta” (i.e., foreign firms can sue and win if a country reduces their profit via a regulation, even a totally reasonable one), essentially implying that trade negotiators put it in with Stiglitz and others approving. Anyone out there know if this historically substantiated?
In Stiglitz’s lst work, entitled Making Globalization Work , he mostly rehashed criticism from Globalization and its Discontents, leading to my bad review. Basically, he detailed why current patterns of globalization aren’t working, and stopped there.
Finally, in the most recent piece, Fair Trade for All, Stiglitz gets down to details: If he were benevolent emperor of the world, how would he run the WTO and the next round of negotiations? The book actually ventures into lots of messy, policy-wonkish details, so readers without a basic knowledge of economics might be a bit lost. All this messiness is actually kind of liberating to read: an economist actually arguing (with data) that particular countries and cultures require particular development strategies, not some grand philosophy a la “The Washington Consensus”. It reminds me a bit of Jeffery Sachs’ concept of “clinical economics”.
I can’t pretend to pass judgment on all of Stiglitz and Charlton’s suggestions, for I’m not an economist. The central argument is that in a true “Development Round” of WTO negotiations, proposals should maximize gains to poorer countries. Provocatively, they argue that “all WTO members commit themselves to providing free market access in all good to all developing countries poorer and smaller than themselves.” This is, of course, the complete opposite of the current unjust trading system. As a corollary, they present good evidence that it is mainly via increased South-South trade that least developed countries can lift themselves up.
At one point in a parenthetical statement they express regrets about the inclusion of “the infamous Chapter 11 of Nafta” (i.e., foreign firms can sue and win if a country reduces their profit via a regulation, even a totally reasonable one), essentially implying that trade negotiators put it in with Stiglitz and others approving. Anyone out there know if this historically substantiated?
November 6, 2010
This book is quite specific about how WTO trade deals should be designed in order to help the developing world. Really interesting, but I don't see how any of his ideas would really be politically palatable in the U.S., especially in today's anti-trade environment.
May 8, 2025
Fair Trade for All: How Trade Can Promote Development is a timely and compelling examination of globalization's impact, offering a rigorous yet accessible exploration of the ways trade policies shape economic opportunity. In an era where debates on tariffs and protectionism dominate political discourse, this book provides a much-needed counterpoint, emphasizing the overlooked struggles of developing nations rather than fixating solely on the industrialized world's economic anxieties.
What sets this work apart is its balanced analysis—while globalization is often presented as either inherently beneficial or fundamentally flawed, Stiglitz and Charlton navigate the complexities with precision, weighing both advantages and drawbacks. Their insights into trade negotiation rounds are particularly illuminating, though admittedly, the dense detail may feel dry at times.
By foregrounding the economic struggles of developing countries and making a case for fairer trade policies, Stiglitz and Charlton challenge mainstream assumptions, offering solutions that go beyond the binary choice of more trade or less trade. Instead, they propose strategic reforms to make globalization work for those who have historically been marginalized.
Thought-provoking, timely, and deeply relevant, it is a book that deserves attention—especially in today's increasingly polarized debates.
What sets this work apart is its balanced analysis—while globalization is often presented as either inherently beneficial or fundamentally flawed, Stiglitz and Charlton navigate the complexities with precision, weighing both advantages and drawbacks. Their insights into trade negotiation rounds are particularly illuminating, though admittedly, the dense detail may feel dry at times.
By foregrounding the economic struggles of developing countries and making a case for fairer trade policies, Stiglitz and Charlton challenge mainstream assumptions, offering solutions that go beyond the binary choice of more trade or less trade. Instead, they propose strategic reforms to make globalization work for those who have historically been marginalized.
Thought-provoking, timely, and deeply relevant, it is a book that deserves attention—especially in today's increasingly polarized debates.
October 13, 2025
Stiglitz nie chciał tego napisać wyraźnie, ale postkolonialne napięcia podczas budowy systemu światowego handlu oburzają go tak, jak i większość z nas. zaproponował piękny w swojej prostocie alternatywny system preferencji handlowych, sprawiedliwiej włączający do gospodarki państwa rozwijające się. szkoda, że jego propozycji jeszcze długo, a może nigdy już, nikt nie rozważy.
June 1, 2023
Didn't read the (lengthy) appendices but a very interesting read. Squarely pro-trade but well aware of the limitations that markes hold towards the ideal model.
June 12, 2015
I loved this book! Read part of it for a class and ended up finishing it because I wanted to hear Stiglitz' advice and perspective on international trade. His general argument is that it is possible for advanced industrial countries to engage in trade with developing countries that is beneficial for both. Currently, however, developed countries are not doing that. Stiglitz reviews the past few decades of international trade agreements, discusses failed attempts at cooperation, and reveals how current trade agreements blatantly help developed countries while severely harming developing countries (ex. agricultural subsidies to developed countries harm the economies of developing countries, which depend heavily on agriculture). He discusses possible remedies to the current international trade structure, but does not seem particularly hopeful for change...which is honestly depressing.
Overall - great book for the casual economist to better understand the environment of international trade and the relationship between developing and developed countries.
Overall - great book for the casual economist to better understand the environment of international trade and the relationship between developing and developed countries.
May 28, 2009
Five stars for the idea, depth of research, and insightfulness. Three stars for the writing, which dragged on and repeated itself a lot as these books have a tendency to do. I got the feeling that this was Charlton's thesis and that Stiglitz really liked it and basically agreed to sign on to what Charlton wrote.
The principal idea, in a nutshell, is that all nations should agree to open their borders to every nation that is both smaller and poorer than itself. This is a very appealing idea to me, since I believe that equitable trade policies are the best way in which the West can promote development. I also intend to read Making Globalization Work, which I imagine will be a more developed, broader, and easier to comprehend version of this book.
The principal idea, in a nutshell, is that all nations should agree to open their borders to every nation that is both smaller and poorer than itself. This is a very appealing idea to me, since I believe that equitable trade policies are the best way in which the West can promote development. I also intend to read Making Globalization Work, which I imagine will be a more developed, broader, and easier to comprehend version of this book.
July 20, 2012
An interesting look at the possible impacts of and improvements for the Doha Round. Lots of Stiglitz's proscriptions seem reasonable and is evidence that they could be effective are promising. However, I wonder if any of it is really practicable. The only real incentive for developed countries to make some of these concession is for good PR. There are precious few real gains for developed countries to make many of the concessions and little evidence of economic gain for the developed countries for the concessions identified by Stiglitz. Without real material gain, it's unlikely that any of the major developed countries would implement these reforms on a long term basis merely for the good PR boost.
January 10, 2009
I have to admit that I did not make it all the way through this book. (I did make it to page 150 out of 214 but had to stop there.)
This really is not a book for laypeople. Unless you have some previous knowledge of economics, international trade or other WTO issues, this book gets very technical quickly. The words may not be difficult words but the ideas and concepts are intricate and complex.
But it did make my respect for Joseph Stiglitz grow, as I do like the way he writes (generally very accessible) and I like the basic premise he comes from, which is how to make globalization really work to help all people in the world, not just the all-ready rich countries.
This really is not a book for laypeople. Unless you have some previous knowledge of economics, international trade or other WTO issues, this book gets very technical quickly. The words may not be difficult words but the ideas and concepts are intricate and complex.
But it did make my respect for Joseph Stiglitz grow, as I do like the way he writes (generally very accessible) and I like the basic premise he comes from, which is how to make globalization really work to help all people in the world, not just the all-ready rich countries.
February 6, 2016
Hablemos de globalización, pero primero entienda usted términos: comercio exterior, liberalización del mercado, competencia, eficacia, mercado, convenios, tratados, organismos internacionales, acuerdos comerciales, sustitución de importaciones.
Stiglitz, es la sencillez de la economía. Lectura recomendada para entender procesos históricos de apertura de mercados y rondas de negociación.
Stiglitz, es la sencillez de la economía. Lectura recomendada para entender procesos históricos de apertura de mercados y rondas de negociación.
October 8, 2008
Stiglitz raises really good arguments and makes many salient points. Too bad you'd never be able to find them due to the obfuscated style this book offers. Choose a different text. That is, unless you like headaches.
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August 24, 2007It is a wonderful books for those of you who are interedted in free trade among nations. Learn how to have a better life by having relationships in therms of economics.
January 14, 2008
A bit drier than other things I've read by him. You have to be really interested in the WTO to get through this one...
August 17, 2013
Very good at demystifying the international "free market" economy. The proposal seems a bit impracticable but the analysis and data presented are very good.
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November 13, 2013practical solutions to poverty and inequality in trade
April 15, 2015
Stiglitz poses a couple of mechanisms to enhance globalisation in order to avoid make people fall into poverty.
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September 19, 2017382 STI
Displaying 1 - 18 of 18 reviews