Notably, negotiations in the so-called Doha Round of trade talks now under way have proceeded very slowly, notwithstanding a consensus among economists that all countries involved would enjoy substantial benefits from further trade liberalization. One important reason is that, although trade increases overall prosperity, the benefits for some people may not exceed the costs, at least not in the short run.
This should be taken as an indication that there is still scope for further reduction of risk and stabilisation of income.7] The second example relates to the fact that most developing countries cannot yet borrow internationally in their local currencies, and have to resort to foreign currency. Foreign currency debt makes these countries more vulnerable to exchange rate movements.