Tuesday, October 4, 2016

The IMF says governments need to do more to help the people hurt by free trade agreements

https://www.theguardian.com/business/2016/sep/27/international-monetary-fund-world-economic-outlook-globalisation-free-trade

A money quote:
"The IMF noted there had been studies showing /significant and long-lasting adjustment costs/ for those whose job opportunities had been impaired by the structural changes associated with the trend, even if the lower prices generated by globalisation helped those on low incomes. 
"'An increasingly popular narrative that sees the benefits of globalisation  and trade accrue only to a fortunate few is also gaining traction,' the IMF study said. 
"'Policymakers need to address the concerns of trade-affected workers, including through effective support for retraining, skill building and occupational and geographic mobility, to mitigate the downsides of further trade integration for the trade agenda to revive.'"

http://www.wsj.com/articles/how-to-make-trade-work-for-everyone-1475621791

More money:
"Despite the tremendous benefits of trade, too many people feel it has left them behind. Other factors, including automation, may have a greater impact on dislocation. But whether adjustment is triggered by trade, by technology or by other factors, for those individuals and communities facing adjustment, the lost jobs and stagnant wages are painfully real.
"With the correct supporting domestic policies, trade will work for all. Governments can step up investment in education, job training, temporary income support, job-search assistance, and targeted trade-adjustment assistance, using approaches crafted to best fit their national circumstances. Many countries, including Singapore, Denmark and South Korea, have implemented successful adjustment programs such as these. Our institutions can help others to develop effective programs and to share cross-country experiences.
"Transforming trade into an engine of growth for all and meeting our objectives for global poverty reduction requires reinvigorating trade integration, not rolling it back. By marrying greater economic openness with supportive domestic policies, trade can play its full role in driving increased and widely shared prosperity."

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