Book Reviews 351

EC Trade Policy and the Third World. An Irish Perspective. By ALAN MATTHEWS. (Dublin, Gill and Macmillan, in association with Trbcaire, 199 1, pp. 246, &15.)

This is a timely piece concerned with the issue of access for manufactured exports of developing countries to the markets of the developed world and, in particular to the EC and Ireland. Although most LDC exports of manufactured goods at present come from a very small number of East Asian countries, there is evidence that a second generation of LDC exporters is emerging and that there is great potential for further growth. The Irish dimension is also of interest since Ireland’s comparative advantage appears to lie with products incorporating a large degree of human skill and technology, thus bringing it into competition with the higher- income NICs. Other developed countries may face similar challenges.

Following a review of global trends in manufacturing trade, there is a detailed account, spanning three chapters, of the policy environment for trade in manufactured goods: GATT and the Uruguay Round, and the main elements of EC trade policy, including the Single Market programme. Having identified the policy constraints limiting access to developed country markets, the issue of liberalization is considered with particular attention to:

(a) the reduction of average tariff levels, the elimination of tariff peaks and tariff escalation; (b) the removal of selective and discriminatory non-tariff restraints: phasing out multifibre

(c) improved preferential access arrangements. arrangement, voluntary export restraints and orderly marketing arrangements;

The author’s standpoint is clearly stated. It is grounded in the economic orthodoxy that trade is good. The ‘new thinking’ on trade theory which permits a role for protectionism when imperfect markets and product differentiation are taken into account is largely ignored-pro- bably correctly given that unambiguous policy recommendations from this new school have not been forthcoming. However, the author does recognize that with trade liberalization there are adjustment costs that fall on resources which are sector-specific or which are mobile only at high cost.

Drawing mainly from secondary sources, the author builds up a convincing treatise, the backdrop of which is the Uruguay Round of GATT now in its final year. Considerable optimism is expressed with regard to the opportunities now afforded to the LDCs in these discussions. Their bargaining power, though limited, is enhanced by the DCs’ interest in binding their tariff rates and the desire for agreement in the areas of services, protection of intellectual property and requirements imposed on foreign investors.

Liberalization or more generous treatment of LDCs’ exports under the Generalized System of Preferences will of course affect different LDCs differently. Most obviously, the preferential position of the Mediterranean and ACP countries with respect to EC access will be eroded. But a coherent argument for integration is offered. For the NICs special and differential treatment is increasingly irrelevant, while the least developed countries can coat-tail on any concessions which the NICs negotiate and can move into areas of trade vacated as the NICs move towards more sophisticated and capital-intensive goods.

For Ireland, trade liberalization, particularly if on a multilateral basis, is seen as an important route to higher employment and living standards provided the short-run adjustment pressures are well-managed. Managing structural adjustment in a positive way entails ‘combining elements of industrial promotion policy, an active labour market and manpower policy and the encouragement of labour market flexibility in so far as this is consistent with social and equity goals’. The appropriate elements of industrial promotion are not, however, spelt out, and it is by no means clear what these might be. Whereas the government may be able to offer some general facilitating services, it is unlikely to have the information and expertise to determine which specific activities are potential ‘winners’ in an ever-changing international trade environment and which are not eligible for its largesse.

That minor gripe aside, the book provides us with a comprehensive and cogent discussion of the issues both from the EC and LDCs points of view. As the GATT talks continue, the author can only speculate on the final outcome and its implications. But it is unlikely to be so wide-

352 Book Reviews

ranging as to obviate further debate, or to foreclose the need for some form of unilateral action on the part of the major players.

TREVOR YOUNG Department of Agricultural Economics,

University of Manchester

Caring for the Eurtli: u strategy f o r sustainable licing, published by IUCN (World Conservation Union), UNEP (United Nations Environment Programme) and WWF (World Wide F u n d for Nature). (London, Earthscan, 1991, pp. 228, E9.95 p/b.)

In 1980 the IUCN, UNEP and WWF published the World Conservation Strategy, which stressed the interdependence of conservation and development, and the message that environ- ment and development were not incompatible. Indeed, it was vital to integrate them to achieve sustainable development. It is widely accepted that the World Conscm~ation Strategy first promoted sustainable development, but that i t lacked concrete policy recommendations. A little over a decade later the same organizations have published Caring for the Earth, with the stated intent of securing a deeply held commitment to the ethic for sustainable living, and to translate its principles into practice.

Carrngfor rhe Earth is aimed at those who shape policy and make decisions that affect the course of development and the condition of the environment. The 17 chapters are divided into three parts. Part 1. ‘Principles for Sustainable Living’, defines principles to guide the way towards sustainable societies and then presents eight chapters which recommend activities that will give substance to those principles.

Part 11, ‘Additional Actions for Sustainable Living’, considers corresponding actions that are required in relation to the main areas of human activity. Chapters include energy, business, industry and commerce, human settlements, farm and range lands, forests, freshwaters, oceans and coastal waters. They present brief surveys and recommend priority action.

Part 111, ‘Implementation and Follow-up’, proposes guidelines to help in the adoption of strategy. There is also discussion of recommended priority actions and suggestion of targets.

The obvious question is: does Caring for the Earth address the ‘gaps’ left by the World Conservarion Strategy? My impression is that it does. There are now firm policy proposals, guidelines, targets, even costings relating to the pursuit of sustainable development. However, the book is more concerned with ‘spreading the word’ than acting as a reference. The style is clear, concise and easy for the layman to read without becoming bored. There are also useful notes and sources (pp. 213-221) for anyone inspired to further reading. Anyone interested in sustainable development should read this. Anyone who is unaware of sustainable development should read this.

C. J. BARROW Centre for Development Studies, University of Wales at Swansea