In a fresh development, on the just born trend of embracing protectionism, the IMF pledged to ‘fight global imbalances’, deviating from its conventional rhetoric on fighting protectionism.
The global economic regulator’s slanting towards US sponsored economic nationalism came at the end of the International Monetary and Financial Committee (IMFC) meeting. The IMFC is a steering body of the Fund.
The communique from the IMFC, released Saturday in Washington, said that officials “are working to strengthen the contribution of trade to our economies”.
The term global imbalances indicate displeasure of China’s continuing high trade surplus that created deep trade deficit in the West especially in the US. Focusing on imbalances itself is an indirect call to address the present working of globalisation that is criticized to benefit one country- China.
Recently, the West is showing tendency to renounce the fast and furious globalisation it has injected on the world economy couple of decades ago. The World Economic Forum meeting at the beginning of the year also witnessed calls for more effective distribution of the fruits of globalisation.
In the last G20 Finance Minister’s meeting, demand for more inclusive version of globalisation arose. Several European representatives also seemed sympathetic about the need for invention in the way globalisation works.
Declarations and communique that comes at the end of international meetings omits the fight on protectionism and makes fresh calls to reorient globalisation to benefit all. This is interpreted as giving space to countries for incorporating inward looking policies.