It is not free trade and the free circulation of capital AS SUCH that has eliminated poverty in the West.
Rather, it is the countless technological INNOVATIONS that have revolutionized produce extraction&distribution which must be regarded as the direct causes within poverty elimination.
The primary beneficial role of our economic system in this, is the swiftness by which the market forces distribute these innovations throughout society. This, of course, should not be forgotten, and illustrative comparisons are plenty:
1. In the medieaval age, monasteries and the manorial systems were often "experiment labs", where new techniques of agriculture, for example, were implemented.
But these important techniques were impeded for swift distribution by the closed, "cellular" economy of those times. Ideals were those of self-sufficiency and suspicion towards "strangers", and trade were looked down upon.
Thus, important innovations took a very long time to distribute themselves.'
2. In the Soviet Union, scientific expertise was at least as prevalent than in the West (the maths&physics education were, in general, superior to that in many Western coun tries), but the planned economy ideas failed to distribute growth in any rational manner, so that economic development was extremely patchy and inconsistent.
However, we shouldn't assume that capitalism and "fierce" competition PER SE stimulates technological growth, on occasion it does, but not as a general principle:
Most innovators and scientists have rarely been inspired by the idea of making a monetary profit, and this constraint may not really be conducive to the growth of KNOWLEDGE.
To learn, and develop ideas that MIGHT be useful, involves much trial and error and conditions of growth seem rather to be to let scientists be luxuriously "independent" of profit considerations and have the time to mature their ideas.
The most important parts in scientific, AND technological progress has happened within UNIVERSITIES, rather than in run-of-the-mill companies involved in the daily struggle for existence and profit margins. (The main exceptions are huge, almost monopolic companies like GM which can AFFORD a large staff of scientists ambling about, mostly in the same manner as if they had been tenured professors)
For run-of-the-mill companies,providing sufficient "research space" is an uncertain, risky and COSTLY investment; a more realistic approach for such companies is mere applied science were ready-made technologies is put into use, or only altered in minor ways.