Linkages between trade and poverty Comments on paper by Martin Cicowiez and Adriana Conconi Trade and pro-poor growth: A preliminary survey (original) (raw)

The debate on the linkages between trade and growth, as well as on mechanisms that can help to create better conditions in order to increase employment and reduce poverty and inequality, is a longstanding one. Bhagwati and Srinivasan (2003, 2002) recalled that Sir Dennis Robertson (1940) described trade as an "engine of growth" many years ago. Adam Smith (1937) also discussed progress and the improvement of labour conditions. In other words, the idea that trade will promote growth, and growth will reduce poverty, has deep roots. In the twenty-first century, however, despite many factors that might be thought to contribute to a dynamic of poverty reduction through growth-the advanced state of globalization, patently greater trade openness, strong interdependence between trade and finances and increasing numbers of people enjoying the benefits of the market-it cannot be said that rising standards of living are the general rule for large numbers of citizens in many countries, especially not for those living in rural areas. Not everyone enjoys higher standards of living, because certain people and social groups have been left behind as progress marches on. Tensions between rich and poor persist in markets and society.

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