This paper provides an overview of ex ante tools which analyse the impact of trade liberalisation on the poor. It aims to guide BMZ and GTZ aid officials – as well as other related agencies - in making informed choices between the different tools available for assessing the likely differential impact of trade liberalisation on the poor. The key objectives of analysing the impact of trade liberalisation on the poor include: to inform the design and sequencing of trade liberalisation, as well as complementary and mitigating measures aimed at minimising the negative effects on the poor and maximising the opportunities generated by trade liberalisation. Ultimately, the goal of this paper is to help maximise coherence between the dual BMZ objectives of supporting trade liberalisation and poverty reduction.
Liz Turner, Ngoc Nguyen and Kate Bird