Liberalized and open agricultural markets can encourage agriculture-led economic growth in developing countries through higher levels of input use, increased production, expanding exports, and higher incomes. But countries moving toward a market-oriented economy may be hampered by ineffective policies,weak institutions, and inadequate infrastructure. Under such conditions, liberalization can harm the poor through changes in products, income distribution, and labor use.

The Markets,Trade, and Institutions Division (MTID) analyzes these economic transformations and identifies government policies that improve institutions in order to promote market efficiency, reduce transaction costs for producers and consumers, and help smallholder farmers achieve better access to markets.