Trade Liberalization and Poverty Reduction in Nigeria: A study of selected Communities in Edo State

Abstract

Trade liberalization is a global  public policy intended to stimulates  growth incentives that could be  translated into  poverty reduction. The growing economy of the developing Nations contend with this fact, as they  grow sluggishly  under  the  weight of  trade liberalization without growth, and where growth exist it has not been translated to poverty reduction inspite of government  efforts in poverty reduction practice in Nigeria. This  study  investigated the influnce of trade liberalization on poverty reduction programmes in Nigeria  while focusing  on Edo state. To achieve this, primary and secondary data were utilized.  With simple random sampling,  nine(9) Local Governments  were  selected across the three senatorial districts in the state.  Through multi stage sampling, 1,350 respondents were selected across 27 communities and they were adminstered questionnaires on the core subject  areas.   Questionnaire served as the  research instrument used in  this study. The collected data were analysed by simple percentage and chi-square  statistical instrument. In the analysis, it was revealed that  trade liberalization hinders the followings: the growth of infant industries, skill acquisition, self-reliance due to increase inflow of foreign products and self-employment which are  the core objectives of poverty alleviation programmes in Edo state, Nigeria.  On the aggregate, the study revealed that trade liberalization has  limiting effects on the performance of poverty alleviation programmes in the study areas in Edo state in particular and  Nigeria in general.  Against this background, the following recommendations among others were adopted,  that:  small scale industries should be protected; safe net should be provided for the poor against the harsh effects of trade liberalization; provision of better and modern infrastructure to stimulate growth; etc.

Keywords: Trade liberalization,  Poverty reduction, Programmme, uneven-development, communities