Trade is Not the Enemy – Nor is it a “Magic Bullet”

Trade is an important tool for economic growth. Trade steers countries toward an efficient use of resources, an infusion of new technologies, and greater competition. But economic growth is not automatic. Even when trade leads to economic growth, it does not necessarily translate into real economic development. For that to happen, trade must be fostered in conjunction with other development-enhancing initiatives. This paper focuses on the link between trade and development, the role of domestic policies in agriculture, regional economic integration, and the potential impact of aid.