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Books > Social sciences > Sociology, social studies > Social issues > Unemployment
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Trade Policy and Global Poverty (Paperback, New)
Loot Price: R1,041
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Trade Policy and Global Poverty (Paperback, New)
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The stakes of the poor in trade policy are large: Free trade can
help 500 million people escape poverty and inject $200 billion
annually into the economies of developing countries, according to
author William R. Cline. This book provides a comprehensive
analysis of the potential for trade liberalization to spur growth
and reduce poverty in developing countries. It quantifies the
impact on global poverty of industrial-country liberalization, as
well as liberalization by the developing countries. Half or more of
the annual gains from trade would come from the removal of
industrial-country protection against developing-country exports.
By removing their trade barriers, industrial countries could convey
economic benefits to developing countries worth about twice the
amount of their annual development assistance. By helping
developing countries grow through trade, moreover, industrial
countries could lower costs to consumers for imports and realize
other economic efficiencies. The study estimates that free trade
could reduce the number of people earning less than $2 per day by
about 500 million over 15 years. This would cut the world poverty
level by 25 percent. Cline judges that the developing countries
were right to risk collapse of the Doha Round at the Cancun
ministerial meeting in September 2003 by insisting on much deeper
liberalization of agriculture than the industrial countries were
then willing to offer. The study calls for a two-track strategy:
first, deep multilateral liberalization involving phased but
complete elimination of industrial-county protection and deep
reduction of protection by at least the middle-income developing
countries, albeit on a more gradual schedule; and second, immediate
free entry for imports from "high risk" low-income countries
(heavily indebted poor countries, least developed countries, and
sub-Saharan Africa), coupled with a 10-year tax holiday for direct
investment in these countries.
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