Globalisation and Brexit, global leaders shift emphasis

By Michael Baxter

Part three of a series of three articles:

IMF managing director, Christine Lagarde, has been talking to the FT about globalisation.

She said: “Globalisation can be a force for good and can generate huge benefits. It has taken lots of people out of poverty, it has helped the Chinese economy, for instance by bringing hundreds of replica audemars piguet watches millions of people out of starvation. But equally, globalisation is producing losers and we have probably not been paying enough attention to this.

“And if there is a lesson we can draw from the current situation, it is that globalisation has to be inclusive and beneficial for all. So whether on growth, inclusive growth, inclusive finance, or the empowerment of women, or the impact of inequality, we have to look deeper into these issues and policies, so that everyone sees the benefits of globalisation and it is not seen to be for certain winners while the losers are left to drift.”

And that, in this post Brexit era, seems to be the new thinking.

There is a good reason for this.The Brexit vote revealed a high level of dissatisfaction.

On July 11th, Theresa May said “The FTSE (share index) . . . is trading at about the same level as it was 18 years ago and it is nearly 10 percent below its high peak. Yet in the same period executive pay has more than trebled and there is an irrational, unhealthy and growing gap between what these companies pay their workers and what they pay their bosses.”

And that’s the new thinking.

Austerity is going out of fashion.

On June 30th, Mrs May said: “We should no longer seek to reach a budget surplus by the end of the Parliament. If before 2020 there is a choice between further spending cuts, more borrowing... continued on page two >



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