World Bank Admits Some Have Lost Out From Free Trade

The benefits of globalization and trade are not spread evenly, suggests a World Bank internal document reported on by BBC News. “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,” reports Kamal Ahmed for BBC. “Kim said that 20% of jobs lost in advanced economies could be linked to trade, with the rest down to automation and the need for new skills.” Many around the world, even in the most advanced economies, worry about prospects for their children. The challenges are complicated by low education levels among the have-nots, divisions over the usefulness of unions and social security programs, and fierce opposition by powerful wealthy interests to pay for such programs. Polarization, fears about trade, and hesitancy over imposing tax structures that could ensure wider social protections contribute to inefficiency, wage stagnation and anger. – YaleGlobal