Campaigners who oppose globalisation would prevent third world countries finding a route out of poverty, Patricia Hewitt has said.

Preventing poor countries from taking part in the global trading system would mean "cutting them off from the pathway out of poverty'' the trade and industry secretary told a Guardian/Observer conference on business and society on Monday.

Hewitt cited South Korea as an example of a country which had moved from a protectionist economy in the early 1970's to a successful, open economy which has now made the country richer than Portugal.

Organisations such as the World Trade Organisation have a role to play in helping to guarantee workers' rights, meeting one of the key aims of the protesters, said Hewitt. Protesters were opposing the very organisations that could help to promote fair trade.

"It is only through institutions like the World Trade Organisation and the International Labour Organisation that we can guarantee labour standards, environmental goals and a trade system that protects developing countries," she said.

However, the minister acknowledged that "unacceptable business practices" did exist in the global economy, with some companies believing that "they can exploit and pollute with impunity".

"Trying to block world trade is not the answer," she said.

Instead, the government would aim to use global institutions like the WTO and the ILO to meet the long term aims the government shared with the demonstrators, said Hewitt.

International meetings have increasingly seen violent protests by groups opposed to globalisation and capitalism. Violence first flared during a WTO meeting in Seattle at the end of 1999 and has been repeated at meetings of the IMF and World Bank in Washington and Prague.

An EU summit in Stockholm in March also saw clashes between police and protesters, while there has also been sporadic violence during May Day rallies in capitals across Europe.