chapter  7
Trade policy, economic growth and poverty reduction in Taiwan
ByPan-Long Tsai, Ching-Lung Tsay
Pages 23

Although the world economy grew well during the 1990s, many people in the developing countries continue to live in extreme poverty. Almost a half of the world’s 6 billion people, 2.8 billion, live on less than US$ 2 a day, and a fifth, 1.2 billion, live on less than US$ 1 a day (World Bank 2000). For decades, a lot of resources and efforts have been mobilised for the noble objective of reducing poverty. Unfortunately, the above records indicate that the outcome of all the efforts was nothing but a disappointment. This fact explains why poverty reduction has remained and recently become the central challenge to many international development institutions as well as bilateral aid agencies (Warr 2000).