Trade Liberalisation and Children: Understanding and Coping with Children’s Vulnerabilities

Trade liberalisation is likely to have a major impact on the lives of poor children and their families. Although this may be positive in the long run, there may be negative short-term impacts for communities that are unable to adjust rapidly enough to the new trading context. Vulnerable groups, especially children, may be affected in a variety of ways based on the effect on household livelihoods and the intra-household distribution of power and resources

This policy briefing examines evidence from the Young Lives study in Peru and Vietnam since Peru’s recent signing of the Free Trade Agreement (FTA) with the USA and Vietnam’s entry into the World Trade Organization in November 2006.

Both Peru and Vietnam have moved towards more open economies in the past two decades. The effect of this move has been impressive in terms of higher growth, lower inflation and sustained foreign investment. These macroeconomic trends have been accompanied by reduced poverty in Vietnam, although the trend has been much less pronounced in Peru. However, in both countries, inequality is increasing.

In Peru, the researchers found that both boys and girls – especially in rural areas – are vulnerable to reduced school attendance if complementary policies are not put in place. In Vietnam, the study concluded that girls in general, children from ethnic minorities, those whose mothers have low levels of education, and children in communities with highly concentrated poverty are likely to be vulnerable in an environment of greater economic liberalisation.

The author argues, however, that local conditions may act as a buffer and suggests some policy options that should be considered to address vulnerability and reduce negative impacts.

Published by the International Food Policy Research Institute (IFPRI): http://www.ifpri.org/

Click here to download a copy of the IFPRI 2020 Focus Brief, December 2007 [PDF file 127 KB]