Other research indicate that leas open countries has low inequality (Kray, 2003) such as Belarus. Key message from Globalization Process in CIS countries ...
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Vugar Bayramov, Centre for Economic and Social Development (CESD), Azerbaijan
Literature focuses on CIS economy insist that;
generally reduces inequality in transition countries and in fact frequently suggeststhat trade liberalization can increase inequality.
Source: OECD and Author’s Calculations
Source; UNDP and Author’s Calculations
Researches indicate that after WTO Accession Inequality has been Increased in Kyrgyzstan, Moldova, Georgia and Armenia. All WTO members in CIS apply very low tariffs, for example, average tariff rate is 4.3 % in Georgia, 9.1 % in Russia, 14.3 % Belarus. Other research indicate that leas open countries has low inequality (Kray, 2003) such as Belarus.
The key message is that so-called ‘market forces’ cannotguarantee the equitable distribution of benefits andconvergence. Not only does government intervention atthe domestic level have a role, but so do mechanisms atthe regional level. These interventions stem from thetheory underlying market failure, positive externalities,and the provision of public goods.