Aiding, trading or abetting : the future of trade, aid and security

Designing trade policies that diminish the likelihood or longevity of violent conflict is a critical task for the international community. In theory, trade can be a powerful driver of economic growth and stability : reducing poverty, creating non-military ways to resolve disputes and providing strong economic incentives for stability.

However, in practice, the current system of rules that govern international trade is fundamentally inequitable, biased towards rich countries and their corporations. At the same time, developing countries are being pushed to adopt uncompromising market liberalization, which can reduce government revenues and undermine livelihoods, serving to increase the prospects for political instability and competition over scarce resources.

The potential impact of trade policies on conflict has rarely featured in the discussion on global trade policy. This policy brief focuses on four areas of trade policy that aggravate the risk of conflict and undermine post-conflict reconstruction : tariff barriers ; domestic and export subsidies ; the continuing dependence of many countries on primary commodities ; the aggressive promotion of an increasingly globalized trade system.

• Download and read Aiding, trading or abetting : the future of trade, aid and security