Diamond Model versus WTO (World Trade Organisation)

Diamond Model and Clusters
Knowledge Center


Reginald Mathe Mazibuko
Director, South Africa

Diamond Model versus WTO (World Trade Organisation)

Liberalization of barriers to trade impacts the viability of the Diamond Model especially for emerging market countries or weak countries in terms of bargaining power in trade negotiations.
I think the model works better for powerful nations than the less powerful. Example is the reformulated and conventional gasoline standards by the USA on Venezuela products.


Luis Garcia-Calderon
Professor, Mexico

Diamond Model versus WTO

Liberalization of barriers to trade is part of the Washington consensus for emerging countries. It has not worked. Not even powerful nations like the U.S. apply liberalization of barriers to trade totally. Just take a look to the agricultural industry, it is highly protected by the U.S. Federal government.
The diamond does work for emerging countries or developed countries. The government role to facilitate and foster the development of the four factors is crucial in many regions and industries, even limiting open barriers to trade to fully develop regional industries. Look at China.


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