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Trade has been a global force for less poverty and higher incomes

Published on February 09, 2017

In the ongoing debate about the benefits of trade, we must not lose sight of a vital fact. Trade and global integration have raised incomes across the world, while dramatically cutting poverty and global inequality. 

Within some countries, trade has contributed to rising inequality, but that unfortunate result ultimately reflects the need for stronger safety nets and better social and labor programs, not trade protection.

Merchandise trade as a share of world GDP grew from around 30 percent in 1988 to around 50 percent in 2013. In this period of rapid globalization, average income grew by 24 percent globally, the global poverty headcount ratio declined from 35% to 10.7%, and the income of the bottom 40 percent of the world population increased by close to 50 percent. Read more. Source|Development Talk | World Bank blog