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Global Markets and Rural Poverty: Do the Rural Poor Gain or Lose from Globalization?

The paper advances the view that if global markets "worked" as theory suggests, then the answer to the question posed would be in the affirmative. Six reasons are given why this does not occur, namely: (1) the prevalence of trade manipulation; (2) the nature of markets in poor countries; (3) exceptions to neoclassical efficient market theory; (4) theoretical and empirical inconclusiveness regarding the relation between open trade policies and growth; (5) income inequality; and (6) the institutional framework of global trade. Trade in food and the Millennium Development Goals (MDG) for food security and poverty reduction illustrate the arguments and the paper concludes with some recommendations.