Question

Why would an LDC argue for “trade, not aid”?

Answer 1

The present pattern of the international trade is free trade and the majority of the nation is part of the WTO, as a result, they required practicing uniform policies for all the income group countries.

The free trade generally benefits for similar income group economies example the USA and the UK or USA or the china.

When higher income countries trade with lower income countries it harms the lower income country as follows.

• The adverse BOP
• The low level of the competition of domestic industry against the foreign firm
• The technological backwardness
• lower currency value against these countries

hence, it is argued 'trade not aid'