Friday, October 7, 2016

The G20 warns about the effects of a populist rhetoric, in reference to Trump – swissinfo.ch

The G20 made this Friday a severe warning about the risks posed to global economic stability the use of a populist rhetoric against globalization, in a scenario of elections, in an implicit reference, but direct to the candidacy of Donald Trump.

“This tendency of populism profoundly anti-globalization has led to politicians using such rhetoric to try to win support. This has led to uncertainty” in the global economy, said Friday the chinese minister of finance Lou Jiwei, speaking on behalf of the G20.

Jiwei avoided mentioning by name the Trump, but it’s the reference more direct-to-presidential candidate u.s. since the start of the meeting, of the fall of the International Monetary Fund (IMF) and the World Bank (WB) in Washington.

In his campaign, Trump proposed that Washington renegotiate virtually all of its trade agreements -that, in general, considered to be greatly disadvantaged for the united States – and the threat of a commercial war open and total with China, a possibility that removes the dream to the world markets.

in Addition, Trump already announced that in case of getting into the White House buried initiatives such as the Agreement Trans-Pacific, an idea launched by president Barack Obama and that it would build a gigantic free trade area.

- Uncertainty

speaking on behalf of the G20, Lou said that the global economy also faces other risks that are located beyond financial aspects.

“The questions and the risks facing the global economy have increased, as some major economies are in a period of elections, the Brexit is a question, increases the vulnerability of the financial system,” he said.

Since the opening of the assembly between the IMF and the WB, Trump has been a constant presence, as a cloud parked over all meetings, although officials taken care of not to mention your name.

the chief economist of The IMF, and Maurice Obstfeld, commented that the triumph of the proposed Trump would represent “a radical change in the traditional position of the united States in regard to its commercial policy”, without risking a more in-depth assessment.

The IMF, which this week presented a new landscape of the global economy, made repeatedly warnings against a growing tendency to question the benefits of globalization and world trade.

- the Engine of growth -

When you open the work on Thursday, the managing director of the IMF, Christine Lagarde avoided making any direct comments on the electoral campaign in the united States, but reaffirmed that the global economy at this juncture needs the “engine” that represents the international trade.

The trade, he said, “it has been a great engine for growth. And if we want better growth to address the remaining problems, we need that engine to support it and speed it up”.

This week, the IMF found an ally in weight in its advanced against protectionism. On the website of the IMF, the government of Germany expressed its commitment to a global economy.

“We are committed to building a global economy open, reject protectionism, promote global trade and investment”, stated the German Finance minister, Wolfgang Schauble.

In a joint article published Wednesday in the daily The Wall Street Journal, Lagarde, the president of the world bank, Kim Yong Kim, and the head of the World Trade Organization, the brazilian Roberto Azevedo, noted that global trade should benefit all.

“despite the enormous benefits it brings, many people feel that they have been set aside”, they warn in the article.

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