International Trade Theory Not Developmental

Opinion by Jomo Kwame Sundaram (kuala lumpur, malaysia)Monday, September 14, 2026Inter Press Service KUALA LUMPUR, Malaysia, September 14 (IPS) - Most free trade advocates falsely claim that comparative advantage ensures developmental gains from trade liberalisation. Mainstream trade theory does not promise that partial trade liberalisation guarantees optimal international specialisation. Specialisation?Jomo Kwame SundaramDeveloping countries are supposedly better off after specialising in relatively simple activities contributing to global supply chains, such as primary commodity production and low-skill, labour-intensive manufacturing. Why should developing countries specialise in producing and exporting mineral or agricultural primary commodities? After all, most economists recognise the greater gains in growth, employment, and income from dynamic modern activities, especially manufacturing.Comparative advantage supposedly gained by trade liberalisation supposedly ensures gains from international specialisation. However, tropical agriculture has instead experienced falling relative prices rather than higher-value-added secondary and tertiary activities in the North. As Hans Sing...