Trade and Livelihoods

World trade could be a powerful force to reduce poverty and support economic growth, but that potential is being lost. Millions of the world's poorest people are being left behind and the inequalities between rich and poor are widening.  

If Africa, East Asia, South Asia, and Latin America were each to increase their share of world exports by just one per cent, the resulting gains in income could lift 128 million people out of poverty. In Africa alone, this would generate $70 billion - approximately five times what the continent receives in aid.

The problem is not that international trade is inherently opposed to the needs and interests of the poor, but that the rules that govern it are fixed in favour of rich countries

In their rhetoric, governments of rich countries constantly stress their commitment to poverty reduction. Yet in practice rigged rules and double standards lock poor people out of the benefits of trade, closing the door to an escape route from poverty and condemning them to insecure or unsustainable livelihoods.

For poor people to benefit from global trade, the rules need to be reformed so that they guarantee fair access for poor people to national and international markets. 

Livelihoods can be described as the way that people make their living, but the term means more than that. It is about reliable and permanent sources of food, income, and employment.

The issue of livelihoods isn’t just about trade. It also encompasses such things as where and how people live (nomadic or sedentary, rural or urban, etc), resource management, agriculture, access to and ownership of land , waged labour , and how all these are affected by inequality (especially for women), conflict, climate change, and other natural disasters.   

Over two thirds of the three billion people who live in poverty currently rely on small-scale agriculture for their food and wages. Millions of others depend on wages for their income. To make ends meet, families living in poverty often have to rely on seasonal agricultural labouring, home-based subcontracting, domestic work, or remittances from family members migrating for work. But having a job doesn’t guarantee a way out of poverty. Waged jobs often trap workers in poverty, not only because of poor pay, but also because of the terms of employment - excessive hours, unstable contracts, or no provisions for illness, maternity, or incapacity. 

Oxfam’s livelihoods programme seeks to help people in poverty have a sustainable livelihood, including making a decent living, living in a safe environment, with adequate housing, clean water, and sufficient food.