The chapter discusses the evolution of global economic integration and the impact of economic reforms on growth in developing countries. It highlights the significant changes in the world economy from the 1970s to the 1990s, marked by the collapse of communism and the emergence of a dominant global economic system. The World Trade Organization (WTO) and the International Monetary Fund (IMF) played crucial roles in establishing a new set of international institutions and norms. Economic reforms in developing and post-communist countries aimed to integrate their economies with the global market, focusing on trade liberalization, price liberalization, budget restructuring, privatization, deregulation, and social safety nets. The chapter also examines the historical context of global capitalism, noting that the world economy was largely closed after World War II but began to reopen in the late 1980s and 1990s. Trade liberalization has been shown to promote economic convergence, with poorer countries experiencing higher growth rates compared to richer ones. The analysis suggests that the lack of convergence in recent decades is due to the closed nature of poorer countries' economies, which is now changing with the spread of trade liberalization programs. The chapter further explores the factors influencing trade policy, including macroeconomic policies, intellectual beliefs, state-building, and political economy. It argues that while macroeconomic pressures delayed the establishment of convertibility, ideological beliefs and state-building played significant roles in shaping trade policies. The chapter concludes by discussing the political economy of trade policy, highlighting how interest groups and political considerations influence trade decisions.The chapter discusses the evolution of global economic integration and the impact of economic reforms on growth in developing countries. It highlights the significant changes in the world economy from the 1970s to the 1990s, marked by the collapse of communism and the emergence of a dominant global economic system. The World Trade Organization (WTO) and the International Monetary Fund (IMF) played crucial roles in establishing a new set of international institutions and norms. Economic reforms in developing and post-communist countries aimed to integrate their economies with the global market, focusing on trade liberalization, price liberalization, budget restructuring, privatization, deregulation, and social safety nets. The chapter also examines the historical context of global capitalism, noting that the world economy was largely closed after World War II but began to reopen in the late 1980s and 1990s. Trade liberalization has been shown to promote economic convergence, with poorer countries experiencing higher growth rates compared to richer ones. The analysis suggests that the lack of convergence in recent decades is due to the closed nature of poorer countries' economies, which is now changing with the spread of trade liberalization programs. The chapter further explores the factors influencing trade policy, including macroeconomic policies, intellectual beliefs, state-building, and political economy. It argues that while macroeconomic pressures delayed the establishment of convertibility, ideological beliefs and state-building played significant roles in shaping trade policies. The chapter concludes by discussing the political economy of trade policy, highlighting how interest groups and political considerations influence trade decisions.