Three crucial corollaries follow. First, trade liberalization will principally benefit the firms of the developed countries of the world, because they are the most technologically advanced. Without adequate time to prepare for this chal- lenge, the developing world will largely fall back on to providing foreign access to cheap labor and cheap natural resources. Nothing in such a process promises

that development, or poverty reduction, will automatically follow. On the contrary, cheap imports and capital-intensive foreign direct investment are likely to displace more jobs than they create, thereby intensifying poverty.