ABSTRACT
The link between trade liberalization, growth, poverty and income disparities has been one of the highly debated topics in recent years. Following the success of South East Asian countries, and with advice and support from international fi nancial institutions – such as the World Bank, the International Monetary Fund (IMF) and the World Trade Organization (WTO) – many developing countries around the world have embarked on trade liberalization programs, along with other reforms, such as stabilization and privatization, over the last two decades or so. As Rodrik (2006: 973) points out, ‘stabilize, privatize and liberalize’ became ‘the mantra of a generation of technocrats who cut their teeth in the developing world and of the political leaders they counselled’. A large number of developing countries have used trade liberalization as a centrepiece of their development strategies over the past two decades. Some trade and development economists, policy analysts and policymakers around the world believe that trade liberalization promotes growth and reduces poverty. The economists have identifi ed a number of possible traderelated links, namely trade and growth; trade, inequality and poverty; and trade and regional disparities.
