text: poverty willcontinue tocharacterize agreatmanycountries. Thisisallthemore reasontobeconcerned aboutcareful allocation ofresources. Aschapter IV argues, significant progress inalleviating poverty ispossible, eveninverypoor countries, withcarefully designed policies. Eliminating poverty overthespace of,saytwogenerations, however, wouldbeimpossible without accelerating growth. -10-Ill.REGIONAL ANDMULTILATERAL TRADING ARRANGEMENTS 43.Countries whichhaveachieved highratesofgrowth anddevelopment regardthe roleofinternational tradeasextremely important. Theprecise natureofthe relationship between tradeanddevelopment isnotestablished, butitisgenerally agreedthatexports notonlyenablecountries toeasetheirbalance-of-payments constraints butalso,byexploiting comparative advantage, improve resource allocation andutilization. Tradealsoopenstheeconomy tointernational standards ofproductivity. 44.Throughout theworld, however, tension between regional andmultilateral trade viesforcentrestage. Theoretical andintellectual arguments, practical economic policyquestions andpolitical concerns gobacktothe1920sand1930swhen ~beggar myneighbour~ policies resulted inhighbarriers totrade. Preferential trading arrangements ledtosubstantial tradediversion. Theeconomic policies ofthe 19305thusundermined livingstandards throughout theworld,particularly inthe colonial countries, creating theconditions thatledtotoday's extremes of poverty. Thesamepolicies played amajorroleingivingrisetothemilitarism whichprecipitated theSecond WorldWar. 45.Thedevelopment ofamultilateral trading system hasbeenacorner-stone of thepost-World Warglobal economic environment. TheDillon, Kennedy, Tokyoandnow theUruguaymultilateral negotiations haveturned theGeneral Agreement onTariffs andTrade(GATT)intoapractical framework forinternational tradeontermsfrom whichalltrading partners canbenefit. Theprocess ofnegotiation in communicating thedetails oftraderelations isasimportant astheoutcome ofthe negotiations. 46.Themaintenance ofanopenglobaltrading framework isoftheutmost importance toallnations, butpartiCUlarly tocentrally planned economies seeking toenterthemarket system andtodeveloping countries, especially tothesmaller andlessdeveloped amongthem.Allcountries haveaninterest inensuring thatthe Uruguay Roundissuccessful. Theyalsohaveaninterest inensuring thatregional tradearrangements arepartoftheglobaltrendtowards openness andtrade liberalization. A.Assessment oftradetrends 47.Thegrowthofinternational tradehasbeenaremarkable characteristic ofthe economic changes ofthepast45years. 48.Themerchandise tradeofdeveloped market economies hasgrownmorerapidly thanthatordeveloping countries during mostoftheperiodsince1965and, particularly, duringthe1960s(seetable2).Thediffe~ence ispartly.explaine? bythehighproportion ofinternal tradeinlarge countr~es suchasInd~aandCh~na incontrast tothehighrateofinternational tradetransactions amongEuropean marketeconomies, buttoaconsiderable degree,itisalsotheresultofthelesser weightplacedoninternational tradeinthepastbymanydeveloping market eConomies compared withdeveloped market economies. -11-Table2.Average annualrealgro~th developed market econom~es 1965-1981oftheexport earnings of anddeveloping countries, Average annual realgrowth rate (Eercentage)Current Edces, 1981 (Billions of USdollars) Deyeloped market economies Merchandise1722 Non-factor services 409 GNPatmarketprices 8932 Developing countries 532 Non-factor services 104 GNPatmarketprices 27571965­ 1910 10.8 4.5 8.5 6.31910- 1915- 1980- 1965- 1915 1980 1981 1987 5.4 5.9 4.1 5.9 -3.0 3.1 5.1 1.8 3.2 3.5 2.4 2.7 -0.1 5.5 2.3 3.0 1.4 8.2 2.7 4.7 5.9 5.7 2.7 4.6 Source: Calculated fromUnited Nations commodity tradeandIMF
analysis: The text discusses the relationship between international trade and economic development, highlighting the importance of trade in alleviating poverty and promoting growth. It also touches on the history of trade policies and the development of multilateral trading systems. These topics suggest that the text is primarily focused on economic issues.