Transnational organizations like the World Bank, the International Monetary Fund (IMO) and the World Trade Organization (WTO) have been great advocates for globalization and international trade. They have consistently credited these phenomena for helping drive global economic growth. However, in advanced economies like the United States, globalization and trade is now being blamed for loss of manufacturing and other blue collar jobs and has led to unemployment and income inequality.
Experts argue that discontent with globalization has led to a rise in populism and protectionism across the West, which manifested in the form of Brexit in the United Kingdom and the election of President Donald Trump in the U.S. With the role of trade in the global economy at a critical juncture, a joint report published by the World Bank, IMF and WTO acknowledges the shortcomings of globalization. The report attempts to address these flaws by providing policy recommendations and solutions that help workers and communities that have been negatively impacted by globalization.
The policy recommendation includes solutions like creating safeguards for workers by changing labor market policies, and creating better policies around housing, credit and education. Some of these changes have already been implemented. Evaluation of the impact of these policies has shown mixed results. This report and its policy recommendations are considered to be an important first step undertaken by the main proponents of globalization to address the problems associated with it.
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