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Delivering on Doha’s Promise: Rich Country Policies and Global Poverty Reduction

This report examines the role of rich country policies in delivering on the promises made in Doha regarding poverty reduction. It explores the impact of trade liberalization on developing countries, specifically focusing on agriculture. The report highlights the potential benefits of global free trade, including opening agriculture markets, raising wages, boosting productivity, and inducing investment. It also provides data on agricultural protection against developing countries in various regions and the potential reduction in global poverty that could be achieved through free trade.

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Delivering on Doha’s Promise: Rich Country Policies and Global Poverty Reduction

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  1. Delivering on Doha’s Promise: The Role of Rich Country Policies Nancy Birdsall Center for Global Development Cancun Trade and Development Symposium September 11, 2003 Cancun, Mexico

  2. Components • Aid • Trade • Investment • Environment • Migration • Peacekeeping

  3. Overall Scores

  4. Trade Aggregate measure of protection in tariff equivalent terms: • Tariffs • Non-tariff barriers • Subsidies Revealed Openness

  5. Total Tariff Equivalent of Agricultural Protection Against Developing Countries(percent tariff equivalent) Source: William Cline, “An Index of Industrial Country Trade Policy toward Developing Countries,” CGD Working Paper #14, October 2002.

  6. Trade Results

  7. Global Free Trade Can Reduce Poverty in Developing Countries by: 1. Opening Agriculture Markets 2. Raising Unskilled Labor Wages 3. Boosting Productivity 4. Inducing Investment 5. An early harvest: free market access for poor nations

  8. Liberalization of agricultural markets Agricultural protection against developing countries: • 34 percent in the United States • 100 percent in the EU • 230 percent in Japan • 65 percent in Canada Free trade in agriculture would reduce global poverty by an estimated 200 million people, or about 7 percent. Source: William Cline, “Trading Up: Trade Policy and Global Poverty,” CGD Brief 7, September 2003.

  9. The Impact of Global Agricultural Liberalization on Poverty in Selected Countries Source: William Cline, “Trading Up: Trade Policy and Global Poverty,” CGD Brief 7, September 2003.

  10. Poverty Intensity of US Imports from Developing Countries RegionGains from Trade Accruing to the Poor Total8.16 LDC44.1 HIPC 38.7 SSA55.8 Source: William Cline, “Trading Up: Trade Policy and Global Poverty,” CGD Brief 7, September 2003.

  11. Impact ofGlobal Free Trade on Global Poverty Reduction (in millions, cumulative) Source: William Cline, “Trading Up: Trade Policy and Global Poverty,” CGD Brief 7, September 2003.

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