Reducing Poverty through Trade

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CHALLENGES

Trade does provide economic benefits, but they may not reach the poorest people.

Trade can work at three basic levels to boost a country's growth and reduce poverty. First, the right policies encourage trade expansion in general, which helps generate income and provides a resource base for development. second, governments can promote exports specifically in sectors that maximize jobs and income. Third, they can help the poorest people - those who hardly participate in the formal economy - to become active participants in export activities.

Developing countries can face challenges at all these levels.

In many countries, the problem starts at the …