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32 Fighting the Diseases of Poverty
capital. Wealthy countries have the best education. An informal
survey of fellow immigrants suggests that many of the most
talented people from poorer countries end up in the universities and
research establishments of the richer nations not only because they
expect a higher quality of education but because they anticipate job
opportunities that will better use their education and talents. In
1993, for instance, ten of the richest (and most well-educated) countries
accounted for 84 per cent of global research and development
and controlled more than 80 per cent of the patents acquired in the
United States and in developing countries (UNDP, 1999).
Freer trade contributes directly to greater economic growth,
helps disseminate new technologies, and creates competitive pressures
to invent and innovate (Goklany, 1995). As an example, trade
accelerated the cleanup of automobile emissions in the United
States because the threat of cleaner cars from imports advanced the
introduction of catalytic converters in the 1970s (Barbour, 1980;
Seskin, 1978).
By expanding competition, trade helps contain the costs of basic
infrastructure, including water supply and sanitation systems. A
vivid example of the importance of trade in improving human wellbeing
comes from Iraq. Because of trade sanctions, it was unable to
properly operate and maintain its water, sanitation, and electricity
systems, resulting in significant public health problems (United
Nations, 200?).
Trade also helps augment food supplies. In fact, between 2000
and 2002, international trade allowed developing countries to
enhance their grain supplies by 11.6 per cent (FAO, 2005). 21 The corresponding
figure for Sub-Saharan Africa was 23.5 per cent. Thus, in
the absence of trade, food prices would have been higher (which
would have priced more poor people out of the market), and hunger
and malnutrition would have been more prevalent in developing
countries. Also, cultivation of marginal lands would probably have
increased to narrow the shortfall between food supply and demand.
In terms of income alone, trade raises incomes for both the poor
and the rich (Dollar & Kraay, 2000; Frankel & Romer, 1999). Dollar