Arbeitspapier

Trade, poverty, and social protection in developing countries

How do shifts in trade affect social protections for the poor? Although the fraction of the world's population considered the 'extreme' poor has fallen by over one-half over the past quarter century, many of those lifted above the global poverty line remain vulnerable to shocks that could place them back into poverty. These are the groups that require social protection to stabilize their incomes. Among the shocks to which the absolute poor have been exposed are those created by trade liberalization, particularly in the agricultural sector. The resulting risks, uncertainties, and significant threats to social stability from this type of trade require that the poor are provided with some forms of adjustment assistance. We examine the effects of trade movements on several dimensions of social protection, including spending, coverage, and adequacy over the past two decades. We find that, contrary to previous studies, disaggregating trade may be key to determining which international market variables drive expansion of social protections for the poor. Examining trade in agricultural goods reveals that net food and agricultural exporters provide better social protection than countries that report food deficits. We reason that although both food importers and exporters are vulnerable to shocks, net food exporters generate relatively more revenues to invest in social programs.

ISBN
978-92-9256-183-3
Language
Englisch

Bibliographic citation
Series: WIDER Working Paper ; No. 2016/139

Classification
Wirtschaft
Economic Impacts of Globalization: General
Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
Agriculture in International Trade
Subject
globalization
social protection
trade

Event
Geistige Schöpfung
(who)
Desai, Raj M.
Rudra, Nita
Event
Veröffentlichung
(who)
The United Nations University World Institute for Development Economics Research (UNU-WIDER)
(where)
Helsinki
(when)
2016

DOI
doi:10.35188/UNU-WIDER/2016/183-3
Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Desai, Raj M.
  • Rudra, Nita
  • The United Nations University World Institute for Development Economics Research (UNU-WIDER)

Time of origin

  • 2016

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