INSUBCONTINENT EXCLUSIVE:
preserve jobs and offers little defence against the job-destroying effects of automation and Artificial Intelligence, Former Reserve Bank of
India Governor Raghuram Rajan has said, asserting that industrial and developing nations cannot afford to ignore the democratic reaction
from those left behind by globalisation and technological change.Delivering the keynote address at the 2019 ECOSOC Forum on Financing for
Development at the UN Headquarters on Monday, Mr Rajan said the open liberal democratic market system that brought the world enormous
academics or leftist leaders, instead they come from some of the most prosperous nations in the world
These are nations that have benefited tremendously from the open world order," he said.Mr Rajan, the Katherine Dusak Miller Distinguished
Service Professor of Finance at the University of Chicago Booth School of Business, said, "We know that protectionism does not really help
In this competitive world, jobs gained by a country in the protected sector are often lost in other sectors that are now rendered
is to help the workforce stay ahead through constant retraining
As populations age in industrial countries, more of them will become reliant on foreign demand from younger countries outside, especially
developing countries and emerging markets to boost growth," he said."Is it wise to block imports today from the very countries you will have
cannot afford to ignore the democratic reaction from those left behind by globalisation and technological change
This should be true both of industrial, countries and developing countries
world, "we should start by recognising that the globalisation of trade and investment flows has disempowered people and their
communities."The ECOSOC Forum on Financing for Development follow-up (FfD Forum) is an annual platform to promote consensus among key
representatives and local authorities are meeting at UN Headquarters for the four-day FfD Forum, which will run from April 15 to 18.Mr Rajan
told the audience at the forum that there is a need to preserve a world open to trade and investment but "we need to keep democratic support
Decisions should be taken at the lowest level consistent with effective governance
These decisions must be taken with an idea of cooperation, they must be taken responsibly given the spillovers both to the country as well
"we must create more room for countries to choose their unique way of coping and countries themselves will have to further decentralise
power so that differentially affected communities can chalk out their own paths
This is as much a developed country problem as a developing country problem
To conclude, globalisation of markets may paradoxically require far more localization of governance."Mr Rajan stressed that emerging markets
and developing countries will have to take much more responsibility in the fight to keep the world open
"To have a chance of succeeding though, the disparate effects of globalisation and technological change both within and across countries
would have to be managed much better," he said.He further said that there may be even need to contain some aspects of globalisation in order
to preserve an open world
"For many decades, we in the developing world were told that we should join the global trading system and be open to foreign direct
While we recognise this would affect some of our people adversely, we were pressed to see this as an inevitable cost of development."Perhaps
because democracy was still nascent in our countries, we implemented this advice overriding domestic opposition wherever it emerged," he
said.While global trade and investment and global competition more generally has enhanced prosperity in many of the countries, the rising
tide has not lifted everyone
"Studies show that in trade-affected districts in India, the incidents of poverty were relatively higher as was violent crime and property
crimes."Mr Rajan stressed that the reality is that trade while typically beneficial overall, has a distributional impact creating winners
It is not however a license for protectionism
Unfortunately that is indeed what we see arising in parts of the industrial world."Get the latest election news, live updates and election
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