The Theory of the Second Best implies that any country with less-than-ideal resources can lose from international trade. Recently it has been suggested this means the South (poor countries) are better off suppressing trade with the North, especially trade in natural resource products, since the North has better developed rights to protect its natural resources. Here we show that the suppression of such trade may also impede the development of property rights in the South, but that even taking this into account, trade liberalization need not improve Southern welfare.
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Library ResourceDocuments de politique et mémoiresdécembre, 2002
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Library ResourceDocuments de politique et mémoiresdécembre, 2005Mexique
More than three-quarters of Mexico's coffee is grown on small plots shaded by the existing forest. Because they preserve forest cover, shade coffee farms provide vital ecological services including harboring biodiversity and preventing soil erosion. Unfortunately, tree cover in Mexico's shade coffee areas is increasingly being cleared to make way for subsistence agriculture, a direct result of the unprecedented decline of international coffee prices over the past decade.
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