The name is absent

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7.1 Stiglitz and Charlton Principles of Fairness

Stiglitz and Charlton (2004) have proposed a set of principles of fairness that they argue should provide a
framework for the ongoing Doha Development Round negotiations.¹⁹ They state (p. 11) that: “It seems
self-evident that:

1. Any agreement should be assessed in terms of its impact on development; items with a negative effect
on development should not be on the agenda.

2. Any agreement should be fair.

3. Any agreement should be fairly arrived at.

4. Any agreement should be limited in scope.”

The first principle calls for the use of general equilibrium incidence analysis to be carried out
under WTO auspices to determine how countries are affected by different proposals for trade
liberalization. The point is to determine which policies maximize the welfare gains for developing
countries in particular. The second principle involves a “fairness constraint,” such that the outcome of
any liberalization agreement provides a larger share of aggregate benefits to the poorer countries, net of
domestic efficiency effects due, for example, to reduction or removal of domestic subsidies such as
agricultural supports. The third principle of “procedural” fairness refers to the openness, transparency,
and conduct of the negotiation process and dispute-settlement resolution. It includes the design of the
negotiating agenda and dispute-settlement procedures in ways to attain greater symmetry of power and
information among both developed and developing WTO member countries. The fourth principle calls
for limiting the scope of issues comprising the negotiating agenda and avoiding unwarranted intrusions
into national sovereignty.

In discussing their first principle, Stiglitz and Charlton (2004) and Charlton and Stiglitz (2005)
cite the widespread use of computable general equilibrium (CGE) models that are designed to provide

¹⁹ It is noteworthy in this connection that when he was Senior Vice-President and Chief Economist at the World
Bank, Stiglitz (2000) favored the principles of “fairness” and “comprehensiveness.” However, he did not then spell
out what he meant by fairness. He interpreted comprehensiveness to cover a wide variety of issues of potential
benefit to developing countries, including what later have become referred to as the “Singapore issues.” More

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