Trade and poverty: background briefing
2002
The reduction in barriers to international trade can increase and create incomes for the poor and provide more resources to fight poverty.This paper:describes the impact of liberalisation on household and individual income levels identifies three channels through which trade reform affects poverty, that is prices, enterprise and government revenueanalyses how policy-making decisions can ensure that liberalisation can have maximum effect on poverty reductiondraws together some conclusionsThe main findings of this paper are that trade liberalisation can have a positive impact on poverty only if developing and developed countries agree in adopting domestic and international trade policies based on best practices and tailored to individual circumstances.Finally, it concludes with some recommendations:both developing and developed governments should attempt to achieve a WTO mandate that is developmental and pro-poordevelopment assistance should help countries to build their capacity to trade and take part effectively in the WTO
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