Despite glaring risks, IMF boss wants developing economies to remove trade barriers

Though developing countries would be disadvantaged if all barriers on trade are removed, the International Monetary Fund (IMF), the World Bank and the World Trade Organisation (WTO) have insisted that it is a must for global economic growth.

The international agencies have listed Africa among the regional governments that must remove trade barriers and reduce subsidies and other measures that distort trade between them and others, demanding their removal.

The institutions, in a joint statement presented by the Managing Director of the IMF, Ms. Christine Lagarde; President of the World Bank, Mr. Jim Yong Kim; and Director-General, WTO, Mr. Roberto Azevedo, on the occasion of the G20 Leaders’ Summit in Hamburg, Germany on Thursday called on governments to readjust their policies as regards this.

But the Manufacturers Association of Nigeria (MAN) has said that any attempt to throw open Nigerian borders would amount to sentencing the real sector to perpetual death,

MAN’s President, Dr. Johnson Joseph, said Nigeria would become a dumping ground for foreign goods.

Read also: Stock Exchange suspends Dicon, Evans, 15 other firms over corporate failures

But the leaders of the agencies said the economic wellbeing of billions of people depends on free trade, adding that deeper trade integration with supportive domestic policies can help boost incomes and accelerate global growth.

The world business leaders gathering under the G-20 Summit this week may come out hard on developing economies to open up more of their border trades.

Hear the IMF boss: “The good news is that when it comes to trade, we do not need to choose between inclusiveness and economic growth. Evidence shows that opening of economies to trade, especially in the late 20th century, boosted incomes and living standards across advanced and developing countries.

“Since the early 2000’s however, the pace of opening has largely stalled, with too many existing trade barriers and other policies that favor chosen domestic industries over the broader economy remaining in place, and new barriers being created.

“Such policies can cause a chain reaction, as other countries adopt similar measures with the effect of lowering overall growth, reducing output, and harming workers.”

Nigeria is to monitor the outcome of the summit from the side line, said an official who spoke on condition of anonymity.

 

RipplesNigeria ….without borders, without fears

Click here to download the Ripples Nigeria App for latest updates

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now