Leaders of IMF and World Bank defend globalization

We’ll do our bit to ensure famine poverty is kicked out of Nigeria – World Bank IMF

Leaders of IMF and World Bank defend globalization

Christine Lagarde, the managing director of the International Monetary Fund, said that the answer to the wave of populism gaining support in many countries was to work for "more growth and better growth" in the world economy. While Trump has ordered reviews of key trading relationships, he's backed down from a promise to label China a currency manipulator and a Nafta revamp has faced delays. Since taking office, Trump has slashed environmental regulations, and his administration has planned big cutbacks at the Environmental Protection Agency.

U.S. President Donald Trump has threatened to impose measures to restrict imports, and attacked countries like China, Germany and Japan for running large trade surpluses with the United States and benefiting from weak currencies.

The IMF expects the USA economy to grow by 2.5pc next year, which would be the fastest in the G7 club of major advanced economies.

21 de abril de 2017, 00:37Washington, Apr 21 (Prensa Latina) World Bank (WB) President Jim Yong Kim said: "if we turn our backs on science and ignore climate change, we would lose all our credibility, " prior to his meeting with the International Monetary Fund.

The number of protectionist policies implemented by governments actually decreased from 2015 to 2016, according to the World Trade Organization.

At a closing news conference, Lagarde and Agustin Carstens, head of the Bank of Mexico and chair of the IMF's policy committee, sought to downplay the changes.

He said there are still many downside risks, however, and countries that have the fiscal space need to continue with structural reforms.

The IMF and World Bank meetings come about a month after Mnuchin insisted that an anti-protectionism pledge be dropped from a Group of 20 communique issued in Baden-Baden, Germany. Steven Mnuchin, attending his first global gathering as Trump's Treasury secretary, had defended the change in the G-20 communique by saying, "The historical language was not really relevant".

"All countries, of course, should guard against what I have called the self-inflicted wounds, such as restrictions, subsidies and other trade distortions that reduce competition and economic openness", Lagarde said.

Nevertheless, Lagarde said Thursday she believes the Trump Administration could be an effective partner.

Federal Reserve Vice Chairman Stanley Fischer said in a CNBC interview on the sidelines of the meetings that he had not seen anything yet to change the view that the Fed will raise rates two more times this year, but he said the actual rate hikes "are dependent on what happens to the economy".

"The IMF has little leverage since its limited toolkit of analysis-based advice, persuasion, and peer pressure is unlikely to have much of an impact on this administration's policies", said Prasad, now an worldwide trade professor at Cornell University.

White House economic adviser Gary Cohn said Thursday the United States was only seeking fair treatment.

Latest News