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On average, world tariffs have declined from 11 per cent in to 7 per cent in see Figure 1. However, there is still evidence that developing countries face disproportionately high tariffs and trade barriers on products of export interest for them see Figure 2.

For example, in , developing countries' agricultural exports faced, on average, a tariff of 8. Developed countries still impose tariffs on imports from developing countries that are twice as high as those from developed countries. Its traditional exports, such as sugar and textiles, have been sustained by trade policies that have allowed the country to adapt to international competition and develop value-added services.

Mauritius' GDP growth reached an impressive average of 6 per cent per year after implementing an export-oriented strategy in Other successful initiatives have been initiated in Rwanda, where coffee exports have fuelled economic development, and also in Kenya, where cut-flower exports have seen a growth rate of 35 per cent annually over the last 15 years, sustained by trade incentives. Coping with trade liberalization. Considering these success stories, should developing countries confidently rush towards liberalizing their economies?

The answer is that they must be more cautious towards dashing to trade competition. Economic research today recognizes that the relationship between trade openness and growth is more complex than a simple causation.

Trade liberalization does not automatically increase trade, let alone growth. The impact of trade openness depends on national context, rather than on the application of a theoretical demonstration. It is quite clear that trade alone will not help the developing world reach the MDGs and that the international community must significantly increase its efforts to cope with trade liberalization and establish certain conditions for growth to take place in all countries.

Developing countries have to be better prepared before entering the global market. Developing countries should develop or expand their supply capacity before opening up to global competition.

They will need technical and financial assistance to benefit from the opportunities that trade opening provides. For this reason, the international community has launched the Aid for Trade initiative, which has been designed to help developing countries build their supply capacity by developing infrastructure investments, productive capacity investments and transition assistance.

This will, for example, help Haitian rice producers or Kenyan flower producers to export their products to international markets. To minimize unemployment distress from the open markets transition, developing countries also need to develop social safety nets.

As developing countries liberalize, workers in sectors without competitive advantage will face unemployment. There is thus a need to reallocate workers to the newly growing sectors, which implies education, training policies and unemployment benefit programmes. In the short term, trade reform will also decrease government tariff revenues, reducing social spending particularly needed to face the rise in unemployment.

The international community should therefore assist developing countries in addressing these adjustment costs, one of the reasons why the United Nations system insists on integrating all development policies into the National Development Strategy of each developing country. To conclude, in the words of Bono, co-founder of the "One" campaign against poverty, trade reform is not about charity, but about providing developing countries the necessary tools to achieve the MDGs.



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