Caixin
Nov 28, 2018 07:33 PM
ECONOMY

Protectionism Won’t Fix Inequality, World Economic Forum Says

The World Economic Forum argues that free trade has increased prosperity across all nations over the past few decades, although it may have played some role in widening inequality within countries. Photo: VCG
The World Economic Forum argues that free trade has increased prosperity across all nations over the past few decades, although it may have played some role in widening inequality within countries. Photo: VCG

Governments that attempt to address domestic inequality by resorting to protectionism and rolling back globalization will find their actions are counterproductive and could undermine the sustainability of economic growth in their countries, the World Economic Forum (WEF) has warned.

Economies that are more open are also more innovative and their markets are generally more competitive, the WEF said in its Global Competitiveness Report 2018, which was released in October. Free trade has increased prosperity across all nations over the past few decades, although it may have played some role in widening inequality within countries by reducing the income of some social groups.

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