Trade pacts can spur virtuous circles of growth for developing countries, as long as they create strong institutional frameworks that include robust intellectual-property protections. But some developing-country officials get the relationship between intellectual-property rights and economic growth backwards.
WASHINGTON, DC – In his recent State of the Union address, US President Barack Obama reiterated his ambition to complete the Trans-Pacific Partnership, a proposed trade agreement among the US and 11 Pacific countries. Meanwhile, the European Union and China are pressing to close their own deals in Asia and elsewhere. If these proliferating trade pacts are to spur virtuous cycles of growth for developing countries, they must not only reduce trade barriers; they must also build the institutional framework of a modern economy, including robust intellectual property (IP) rights.
WASHINGTON, DC – In his recent State of the Union address, US President Barack Obama reiterated his ambition to complete the Trans-Pacific Partnership, a proposed trade agreement among the US and 11 Pacific countries. Meanwhile, the European Union and China are pressing to close their own deals in Asia and elsewhere. If these proliferating trade pacts are to spur virtuous cycles of growth for developing countries, they must not only reduce trade barriers; they must also build the institutional framework of a modern economy, including robust intellectual property (IP) rights.