Sharing globalisation gains would encourage free trade
Subject The October annual meetings of the IMF and the World Bank devoted attention to ailing (or even failing) globalisation. Significance Global trade growth has slowed recently, and although much of this slowdown has been due to structural factors, greater protectionism has also played a part. These factors will persist and the world will gradually adjust to a 'new normal' for global trade. The IMF, along with other multilateral agencies such as the OECD, are studying rising inequality and other factors thought to be driving the protectionist trend in order to consider ways in which gains from trade can be shared more equally in coming years. Impacts Globalisation benefits have been uneven but the benefits of moving to less free trade are likely to be no more equal. Setting policy to reinvigorate trade requires not only economic incentives to be considered, but also social, regional and ethnic factors. Technology will continue to lower transportation and communication costs, putting pressure on labour markets; robotics will add to this.