Trade protectionism in rich countries hurts poor nations, UN survey finds

Trade protectionism in wealthy countries, especially policies that target agriculture and textiles from the South, is the biggest threat to the people of poorer countries, according to the United Nations annual World Economic and Social Survey, released today in New York.

The report also recommends greater openness between developing countries, with South-South trade estimated to account for about 40 per cent of all trade in developing countries.

But it warns that "openness and liberalization are not a panacea for poverty reduction," stressing that economic policy-making has to be tailored to the individual circumstances of countries.

The survey makes a link between economic policies geared to promoting growth and a reduction in poverty, although it adds that a mix of economic policies is best in fighting poverty.

At the launch of the survey today, UN Under-Secretary-General for Economic and Social Affairs José Antonio Ocampo said first-rate economic policies are needed if the world is to achieve the Millennium Development Goal of halving extreme poverty by 2015.

"But the current era of low economic growth and difficulties in maintaining an open trade regime poses a threat to universally agreed goals on reducing world poverty," he said.

According to the survey, land redistribution and the liberalization of agricultural markets can also reduce poverty in rural areas, home to three out of every four people defined as living in absolute poverty.

The report also observes that the maintenance of macroeconomic stability during times of growth ensures countries have greater manoeuvrability in economic crises, thus better protecting the poor.

It contrasts the experience of many East Asian countries in the late 1990s, when they recovered relatively quickly from a financial crisis, to Latin America, where crises have become cyclical and governments are able to do little to help the poor during downturns.

Video of press briefing