Trade Liberalization Has Been Touted By Western Institutions As Essential For The Stability Of Advanced Economies

1362 Words Oct 22nd, 2016 6 Pages
Trade liberalization has been touted by western institutions as essential for the stability of advanced economies, and as a panacea to the developing countries’ development needs. For instance, Goldstein, Rivers, and Tomz (2007) suggest trade liberalization was not only beneficial to advanced economies, but it also benefits all states, including developing nations, many of which today argue that they have gained little from it (Goldstein, Rivers and Tomz 2007, 39). As well, Oatley (2012) argues that majority of countries believe that they are better off with trade liberalization than without it, nonetheless, like all political systems, organization of international trade “reflects the interests of the powerful” (Oatley 2012, 43). While trade liberalization has been touted by the world’s financial institutions as the panacea to the developing countries’ needs, evidence seems to suggest that economic globalization’s impact of poverty reduction in developing countries is largely limited. The scholarship examining the extent at which trade liberalization (henceforth refers to as economic globalization) impacts poverty levels is limited. This essay examines the relationships between economic globalization and poverty levels in African countries. For instance, a 2006 UNDP report illustrates that just 7.2 percent of Bayelsa and Rivers State (Nigeria) residents were poor in 1980, but in 2004, the poverty index figures rose exponentially to 44.3 percent; Nigeria’s national…

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