Trade Liberalization & Poverty

For centuries, trade has been the centre point for economic growth and stability, with mutual benefits for all nations. No matter what we do throughout the day, ‘trade’ surrounds us, whether we are driving a European car, watching a Japanese television set or wearing shoes made in China, trade is everywhere. ‘We’ definitely gain from free trade and trade liberalization, but we fail to define what is meant by ‘we’. With approximately 30% of the world living on less than $1.25 per day, the effects of free trade are not evenly distributed among poor and wealthy households, leaving the gap between rich and poor to increase at will. Economic policies cannot take every individuals situation into consideration and often harms the most vulnerable households in society in the hope that free market fundamentals will bring them out of poverty, leaving one unanswered question. How does trade liberalization effect individuals living in poverty?