Free Trade and Poverty

Why are some countries poor while others prosper under globalization? At least some experts will tell you it is all about the willingness of a country to participate in the global marketplace. Proponents will say free trade is the best way for a country to climb out of poverty.

The "Asian tigers" and China have all traded their way to development by focusing on producing increasingly higher-value goods and services for export. But that answer obscures the complexity of the question. Most modern countries, including almost all of sub-Saharan Africa, have adopted liberal trade and investment rules as they seek to harness the economic power of globalization.

Could the difference between success and failure lie in a country's "entrepreneurial spirit"? Perhaps some countries are just not as resourceful or do not have the same economic history as the Asian success stories? Again, a look at sub-Saharan Africa--indisputably the continent least benefited by the globalization phenomenon--belies that view.

Walk through any marketplace in Africa, and you will immediately be confronted with evidence of the continent’s commercial vibrancy. From a small village in Cameroon, to a miles-long bazaar in Côte d'Ivoire, African markets are alive with the shouts of merchants hoping to finalize a sale with a recalcitrant shopper. In Senegal, young boys roam the streets hawking cheap goods made in China to every pedestrian or unwary commuter stuck in one of Dakar's infernal traffic jams. And Benin's "Mama Benzes" keep the economy going while providing for their families in style. The dominance of trade and commerce in African daily life is not a modern phenomenon. The powerful and rich empires of Mali and Ghana, for example, demonstrate trade is an intrinsic part of ancient African history.

The fact that the tide of globalization has elevated some countries while drowning others is a multifaceted issue. The essays in this section explore some of those intricacies.

Articles on Trade & Poverty:

Can the World Trade Organization Help Cape Verde? Why would a small, poor, island nation like Cape Verde want to join the most powerful economic "club" in the world? Can joining the WTO help Cape Verde?

Bridging the Gap: How Linking Poor Countries with Rich Academic Institutions May Benefit Development Poor countries often face a "brain drain" when their best and brightest are forced to leave in search of jobs and a better life in the developed world. We can begin bridging the development gap by linking these countries with academic institutions in the West that can provide much-needed technical assistance training.