Trade and Investment
Trade and Development
Integration into the global economy can be a powerful force
for economic growth and poverty reduction. In its recent National
Security Strategy, the Bush administration established
the goal of igniting a new era of global economic growth through
free markets and free trade. The link between trade and economic
growth is further explored in the report Foreign Aid in
the National Interest: Promoting Freedom, Security, and Opportunity
in the section titled, More
Trade and Investment Mean Faster Growth.
Developing countries’ overall share of global trade
is increasing, and the flow of foreign direct investment to
poor countries has grown rapidly. But this growth is concentrated
in a few countries, and many of the poorest developing countries
remain on the sidelines. Not surprisingly, development issues
have become increasingly prominent in international trade
negotiations. The Doha Development Agenda recognizes that
continued multilateral trade liberalization is necessary to
accelerate growth and reduce poverty in developing countries
and that World Trade Organization (WTO) member countries must
help developing countries build their capacity to take advantage
of trade liberalization. USAID trade capacity building (TCB)
assistance programs—$423 million in FY2001 and $476
million in FY2002—are already helping developing countries
to integrate themselves into the global economy.
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