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IMF, World Bank and WTO call for removing trade barriers to boost growth
In a joint statement at the G20 summit, IMF, World Bank and WTO called for removing trade barriers and expediting economic reforms to boost global growth and employment. To achieve deeper trade integration, supportive action needs to be taken through domestic policies. This requires decisive action by the leaders of the group.
They blamed technology as the prime reason for job losses in some regions.
International Monetary Fund (IMF) Managing Director Christine Lagarde, World Bank President Jim Yong Kim and World Trade Organization (WTO) Secretary General Roberto Azevedo signed a joint statement in this regard.
Countries have resorted to enhanced protectionism:
- Since the early 2000’s, the pace of opening of economies has largely stalled, with too many existing trade barriers and other policies that favour chosen domestic industries over the broader economy remaining in place, and new barriers being created
- Adoption of such policies can create a chain reaction, with increased adoption of similar measures.
- This will lead to with lowering overall
Measures that should be taken to remove reinvigorate growth:
- Supportive domestic policies can help boost incomes and accelerate global growth along with deeper trade integration. To achieve this trade barriers and subsidies, that distort trade should be reduced
- Adjustment to structural changes can bring a human and economic downside, without the right supporting polices
- There exists sufficient reason that opening of economies to trade especially in the late 20th century, boosted incomes and living standards across advanced and developing countries
- Both in advanced and in developing countries, stepping up trade reform is essential to reinvigorate productivity and income growth
- Governments should find ways to support workers, thus each country needs to find its own mix of policies that is right for their circumstances.
- It should provide job search assistance, retraining, and vocational training that can help those negatively affected by technology or trade to change jobs and industries.
- Adequate social safety nets will give workers the chance to retool