MEDIA RELEASE
Released By:
McMullan
The vital link between poverty reduction and open international trade was highlighted today during the launch of a new book at Parliament House.
Trade and Poverty Reduction in the Asia-Pacific Region, launched by the Parliamentary Secretary for International Development Assistance, Mr Bob McMullan, details how open markets can increase revenue for developing countries and help reduce poverty.
In addition to open markets, the book finds that developing countries need to improve their trade-related economic capabilities so they can optimise participation in the global marketplace.
"No country has achieved strong and sustained economic growth and rapid poverty reduction without participating in international trade," Mr McMullan said.
"With so many people living in poverty, Australia recognises that trade is critical in assisting communities in developing countries build their livelihoods and break the poverty cycle.
"Least developed countries account for less than one per cent of global trade. Australia is working with developing countries to help them engage in the global trading system, boost their trade flows and diversify their trade activities.
"Australia's support for trade and development is built around two pillars–helping developing countries gain access to international markets for their goods and services and helping them to be competitive in the global economy."
The book provides examples of the benefits of open trade through 33 research papers and case studies.
One study explains how in 2008 with assistance from Australia, the Government of Vanuatu negotiated an end to the monopoly of Telecom Vanuatu that led to increased competition and foreign investment. The telecommunications company Digicel is now investing US$35 million to build a state of the art network in Vanuatu, which is delivering vital services to people living in low-income, remote and rural locations.
The case studies also illustrate how international trade can benefit local communities and individuals. Women potters in Lombok, Indonesia have created a successful export business employing 3000 people, with average monthly incomes increasing fourfold over a ten-year period.
The book was jointly commissioned by AusAID and the World Trade Organization, and was prepared by the Institute for International Trade at Adelaide University.