An Ecnomics Question
Why are the biggest winners in the past decade of increasing world trade mostly in south and east Asia,whereas the biggest losers are mostly in the former Soviet Union and sub-Saharan Africa?History is a partial guide:east Asia has a long history in world trade,lately revived by the Chinese adoption of market economics.The Soviet Union,on the other hand,was sheltered from free-market forces for more than 70 years.In Africa,civil strife or inadequate infrastructure,which results in high transoport costs,has constrained a number of economies.Some are disadvantaged because they are landlocked; many have little to trade but commodities,prices of which have fallen in recent years.In some regions,certain countries have suffered by adopting misguided policies,often under pressure from international instituions such as the International Monetary Fund.
World trade growth has been a great force in reducing poverty.In China,for example,the number of people living in rural poverty went from 250 million in 1978 to 34 million in 1999.In the less globalised countries,poverty rose 4% from 1993 to 1998.
Q:Examine the significance of 'free-market forces' in influencing a country's economic growth rate.