International Journal of Public Finance (Dec 2017)
Using of Protectionism Policy Tools in the context of WTO from the Perspective of Dependency Theory
Abstract
Since the 1980s, when neoliberal policies have been intensively implemented, the distribution of income between developed and less developed countries in the world has begun to increase inequality. There are discourses that the neoliberal view suggests that today's wealthy countries are successful with free market economics, so that all countries in the world must move to a free market economy system and that neoliberal policies are the only way for development. According to the neoliberal policy which advocates the state neutrality in the economy, the role of the state in the economy should be reduced. As a result, weakening the effectiveness of government policy-setting and implementation in the economy is intended. Thus, developed countries direct the underdeveloped or developing countries in the direction of their own interests. The result of these discourses, the theory of dependence which states that there is a relationship between developed and underdeveloped countries based on power and control, that underdevelopment of underdeveloped countries should be sought in the development process of developed countries has come out. The aim of the study is to assess the results of the use of defense measures in the trade policy implemented under the World Trade Organization (WTO), based on the assumptions of the dependency theory. When the use of defense instruments in trade policy is examined, it appears that these instruments have been effectively used by developed countries that advocate and enforce the free market economy in the world.
