The (temporary) breakdown of the Doha World Trade Round signals more than a critical development in the crisis ridden WTO negotiations. Not only has the institution of the WTO been called into question but the very functioning of the multilateral order, the system of »global governance.« Beyond that, it is a symptom of a profound crisis in the global (economic) order and also of bilateral and multilateral development policy which despite decades of efforts to that end has been unable to integrate poor countries into the global market as viable economies.

For the majority of developing countries the WTO negotiations are one of the few possibilities of pursuing their interests in a fair and balanced trade system; only here can there be negotiations on opening up the markets of the industrialized countries and removing their harmful agricultural subsidies which lead to dumping. The majority of developing countries whose negotiating strength has increased through the G20 and improved coordination therefore have an interest in the resumption of negotiations as soon as possible, particularly so that important concessions and progress are not in vain. However, even a compromise in the agricultural negotiations which ostensibly are blocking progress would still not bring about a successful conclusion of the Doha Round because there are other issues of major importance, particularly for developing countries, which are not in prospect of early resolution. While for their part the industrialized countries make concessions dependent on quid pro quos from the developing countries and force the latter into extensive market opening, even newly industrialized countries do not feel up to the increasing competitive pressures and are in danger of »deindustrialization.
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A growing number of poor countries, of course, even in the case of »fair« market trading cannot make use of it – or only to a limited extent – due to insufficient production capacity and product availability. In recent studies both the World Bank and the Carnegie Endowment for International Peace have prognosticated benefits from growth as a result of further trade liberalization which are significantly smaller than believed hitherto and gains are strongly differentiated between regions and countries (and also within countries). Trade changes the structure of comparative advantages between national economies and therefore the respective gains and losses. The fears and reservations of many developing countries arise from the fact that they do not consider the offer of the industrialized countries as adequate and cannot regard it as beneficial for their countries. Without adapting the rules, special and differentiated treatment of developing countries and their »special products,« renouncing »reciprocity« on the part of the industrialized countries, and additional support programs (»aid for trade«) successful integration of a large number of developing countries will not succeed. Finally, this will show whether a multilateral regime currently with more than 150 formally »equal« members can function and provide the global economy with an organizing framework. Basically, »global governance« is being fundamentally called into question without an alternative being apparent.