Poverty Alleviation, Economic Development and the World Trade Organization

According to the World Bank, from 1993 to 1998, poverty rate has reduced by 14 percent in developing countries, similar to about 107 million people. This may result from receiving foreign investment that plays an important role in local economy growth. For example, the proportion of population living in poverty in India decreased by half in the two decades, from the 1970s to 1990s, while the number of Chinese in poverty declined by approximately 210 million during twenty-one years, from 1978 to 1999 (Healey 2008). In other words, the standard of living is improving due to the benefits of international economic activities.

This shows that due to the international investment and trade many poor countries succeeded and their Poverty rate fell. For example in China, the poverty rate fell 68 percent between 1981 and 2004. This evidence shows that due to the globalization poor countries are improving their country and also poverty has sharply declined. This is another positive impact of

Subsidized agriculture in the USA is one of the greatest hardships to economic growth in low income nations. Industrialized nation has Economic Cooperation and Development and have spent over $100 billion on crop programs. These types of programs make farm overproduction. Which makes markets have to much product which in turn hurts low income nations because of over production you have surplus stocks which in turn are sold at a lower cost.

Over the past four decades, the economy has undoubtedly become an integral part of the whole entire world. Global GDP has almost doubled since 1975 with the assistance of new innovative technology and reductions in trade barriers. The overall global growth driven by trade openness has also reduced a significant proportion of people in poverty, the number floating just around 1 billion in 2011 and the most up to date number since. Lowering trade costs for deeper integration of markets holds the most promise out of the five areas of polices mentioned because it unlocks the economic growth needed for poverty reduction and create new trade opportunities for the poor through

Global poverty ends when the local economy is able to trade its way into an improved future. The most significant alleviations of poverty have been seen in those countries that have been able to create and trade goods. By building an industry and joining the global market, an impoverished country can generate revenue to in turn be reinvested into the local economy. The current policies in place limit the potential of poor countries to join this market and improve themselves. Reforming trade negotiation and the limitations placed on the market will allow these smaller countries to create their own sources of income.

Economic globalization has been a crucial role and a very commonly discussed issue in today’s world. As explained in the book “International Business”, the term economic globalization means increasing economic interdependence of national, regional and local economies across the world through acceleration of cross-border movements of goods, services, technology, and capital (Joshi). Many people’s first impression of economic globalization would be the significant economic growth and higher living standards it creates, especially in East Asian developing countries. Recently, a heated conversation about economic globalization centers around its effectiveness in reducing worldwide poverty. Economic globalization has shown an unprecedented

In this essay I shall try and explore if countries of low levels of economic development; LICs, can only develop if they receive aid from already developed countries; HICs. I shall be weighing up both the benefits of aid and it downfalls, as well as the possibilities presented through trade alone. Is it easier for an LIC to develop through aid or by letting itself trade its way forward?

Globalization advanced free trade, open markets, and competition in the world economy. Regrettably, this worldwide amalgamation and growth contributed to the equalities and inequalities between third world nation-states. The growing populace placed an extra demand on the third world nation-states for food, shelter, and clothing. Consequently, Africa, South Asia, and Latin America grew anxious since their populaces are predisposed to diseases, famine, and premature death. In chapter one of Promises Not Kept: Poverty and The Betrayal of Third-World Development John Isbister declared that in the twentieth cen¬tury,

There is no topic in present international relations that attracts more noise than the concept of globalization. This is because of its deep controversial nature. Many scholars argue that advocates of globalization argue that it allows poor countries and their citizens to develop economically and raise their standards of living, while antagonists of it contend that the creation of an unregulated international free market has profited multinational corporations in the Western world at the expense of local enterprises, local cultures, and common people.

Foreign trade has been a widely debated issue across the developing world. In the last 30 years, a number of developing countries increased their openness to foreign trade. World trade as a percentage of world output has increased 1.46 times between 1980 and 2003.These years witnessed an integration of individual economies into a globalized economy, which has been beneficial for the participating countries in many ways. This integration includes the flow of capital across countries in addition to the traditional trade in goods and services. In this piece, we focus on trade in goods and services between nations. We study the effects of trade on poverty. While the many advantages of trade liberalization have been widely

Although consumers at the bottom of global economic pyramid (BOP) represent the majority of the global consumer market, they have so far largely overlooked. There are a growing number of international consumer goods companies which are tapping into the low-income markets to make large profits, as well as to help lift billions of people out of poverty.

The mechanisms of this global stage are complicated and, for the most part, hidden. The players are more easily named. The World Trade Organization (WTO) and the World Bank loan money to poor countries to help their economies and infrastructures. But they loan at a price: deference. Once the poor countries are in debt, they must make concessions in their spending like cutting health care. In this way, free trade takes advantage of poverty.

A study conducted by McGillivray demonstrates how aid to African countries not only increases growth but also reduces poverty. Furthermore, the author points out the important fact that continuously growing poverty, mainly in sub-Saharan African countries, compromises the MDGs (Millennium Development Goals) main target of dropping the percentage of people living in extreme poverty to half the 1990 level by 2015. His research econometrically analyzes empirical, time series data for 1968-1999. The paper concludes that the policy regimes of each country, such as inflation and trade openness, influence the amounts of aid received. (McGillivray, 2006).

Bhagwati discusses the ills that afflict to nations poorness and the need for globalization in international economic development. Bhagwati considers the issues of poverty and the policy of globalizations. The globalizations are the supported propositions of creating solutions by promoting growth of the economy. Bhagwati explains that growth focuses on granting the poor with access to opportunities for growing the economy. Trade and growth is the second theme enlisted which justify the ability to investment for

The list of possible causes is extensive, and it is sometimes difficult to understand how all of the hardships a country experiences correlate with each other. Most of the world attributes the blame for poverty to the country’s government, which seems to be a significant factor in most cases. Consequently, many efforts of development organizations have been focused on the aspect of correcting unethical government behavior. While governments play a material role, other factors such as geographic location could be just as significant. Transport cost are significantly higher for inland countries who do not benefit from having ports. Exporting countries are less likely to desire trading with inland countries, and these landlocked countries are forced to produce more of their own goods and services. Disease can also be a significant hindrance to the growth of an economy. Advances in this particular area have been instrumental in many countries, and disease prevention is an ever-expanding field of study. While all of these factors are relevant in the conversation of development, perhaps the greatest benefits to impoverished countries result from economies expanding as a whole. Where there is more consumer spending and development across an economy, more growth is possible. Governments need to stimulate their economies and spend in areas that will create sustained benefits for their citizens.