Since the mid-1970s protectionist pressures have increased considerably. This has been documented and discussed e.g. in Hindley and Nicolaides (1983) and Corden (1984). International organisations like the GAIT, the OECD, the World Bank and the IMF have repeatedly warned against increasing protectionism and its negative effects on the world economy (see e.g. GAIT (1985), OECD (1985), World Bank (1985a) and Goldsbrough and Zaidi (1986». In particular, World Bank (1985a, 1987) emphasises that increased protectionism in industrial countries against developing countries' exports reduces the export earnings that developing countries would otherwise obtain. That is detrimental to their capacity to import and therefore a threat to efficient economic growth. In addition, it has a negative effect on developing countries' capacity to serve their debts and adversely affects their terms of trade. (See also van Wijnbergen, 1985a.)

Against this background this paper considers the following specific topics. First, it discusses whether current protection in industrial countries discriminates against exports from developing countries (LDCs). The next question is, of course, whether this protection has been effective in deflecting such exports from the markets of the industrial countries. Further prospects for exports from developing countries are then investigated. Finally, there is an examination of the way current trade policy practices are weakening and disrupting the GAIT. Some final remarks conclude the paper.