The Rising Wave of Anti-Globalization Worries IMF
Thursday. International Monetary Fund (IMF) chief Christine Lagarde called for global cooperation to improve living conditions in low-income countries, against the backdrop of rising anti-globalization sentiment.
“The greatest challenge we face today is the risk of the world turning its back on global cooperation — the cooperation which has served us all well,” said Ms. Lagarde, managing director of the IMF, at the Center for Global Development.
In her speech, Ms. Lagarde hinted that the IMF might revise down its global economic growth forecast later this month. In April, the IMF expected the world economy to grow 3.2% this year.
Globalization and increased integration over the past generation has yielded many economic benefits for many people, but at the same time, large groups of people have been left behind, said the IMF chief.
“It did not take the Brexit vote to understand that low growth, rising inequality, and a lack of jobs have combined with social and geopolitical concerns to fuel the rise of populism and inward-looking forces,” Ms. Lagarde said.
The anti-globalization sentiment and the breakdown of global cooperation could reduce the opportunities for the low-income developing countries to improve their living conditions and contribute to the global economy, said Ms. Lagarde.
“If we are not able to provide this coming generation with a livelihood and a chance to share in global welfare, we should be prepared for migration and political strife at an unprecedented level,” she warned.
Europe is now dealing with a serious refugee crisis.
Ms. Lagarde called on European authorities to propose a pan-European approach to address the refugee crisis in a collective, even-handed, and decent and organized way.