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World Bank admits some have lost out from free trade
Source: BBC
World Bank admits some have lost out from free trade
Kamal Ahmed
Economics editor
6 October 2016 Business
The World Bank has admitted the growth of global free trade has not been a success for all.
An internal briefing document seen by the BBC says the effects of globalisation on advanced economies is "often uneven" and "may have led to rising wage inequality".
The bank, which provides loans to developing countries, also says that "adjustment costs", such as helping people who have lost their jobs, have been higher than expected.
Dr Jim Kim, the head of the World Bank, told the BBC that he understood why people were angry in advanced economies despite the fact that free trade was one of the "most powerful" drivers of growth and prosperity.
"I hear them and they are saying that my life is not better than my parents and my children's life does not look like it's going to be better than mine," he told me.
"So there is a real concern but the answer is to have more robust social security programmes, so you have a safety net. And then you need to get serious about getting the skills you need for the jobs of the future."
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Kamal Ahmed
Economics editor
6 October 2016 Business
The World Bank has admitted the growth of global free trade has not been a success for all.
An internal briefing document seen by the BBC says the effects of globalisation on advanced economies is "often uneven" and "may have led to rising wage inequality".
The bank, which provides loans to developing countries, also says that "adjustment costs", such as helping people who have lost their jobs, have been higher than expected.
Dr Jim Kim, the head of the World Bank, told the BBC that he understood why people were angry in advanced economies despite the fact that free trade was one of the "most powerful" drivers of growth and prosperity.
"I hear them and they are saying that my life is not better than my parents and my children's life does not look like it's going to be better than mine," he told me.
"So there is a real concern but the answer is to have more robust social security programmes, so you have a safety net. And then you need to get serious about getting the skills you need for the jobs of the future."
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Read more: http://www.bbc.com/news/business-37580844