Prime Minister Justin Trudeau speaks at the UN headquarters on April 22, 2016. (Photo: Sean Kilpatrick/CP)He's making that speech in a year where popular resentment has led to Britain leaving the European Union; Donald Trump contending for the U.S. presidency; and once-fringe nationalist parties increasingly competitive in different European elections.
Peace through prosperity"The prime minister will emphasize his view that a more peaceful and unified world can be achieved through broad-based, shared prosperity," a spokesman said. "And that governments have a role in implementing policies that have a positive effect on the middle class." The prime minister will address the assembly Tuesday on his second day of meetings at the United Nations, following a leaders' conference on refugees Monday. In that meeting, Trudeau intends to address some of the challenges in successfully integrating newcomers amid a historic refugee crisis spurred by Syria's civil war. It's his first general-assembly speech — although he's spoken at the UN twice already, once at a climate conference and at a women's forum where he announced Canada's campaign for a temporary seat on the UN Security Council.
IMF chief wants Canada policies to go viralIt comes a few days after his economic policies were applauded by the head of the International Monetary Fund. Trudeau's domestic opposition grumbled in response that it would be Canadian taxpayers stuck with the bill from a growing national debt. In her speech to a Canadian audience, Christine Lagarde proposed several policies for stimulating growth: —A social safety net and retraining for workers displaced by new technologies and globalization. —Trade. She said international trade had helped reduce the rate of extreme poverty by half since 1990. She said it had not only benefited developing countries — but also benefited people in wealthy countries who earn 15 per cent more in trade-linked jobs and gain purchasing power thanks to cheaper goods. She proposed expanding trade deals to include services, not just goods.
IMF director Christine Lagarde takes part in a news conference with Prime Minister Justin Trudeau on Parliament Hill on Sept. 13, 2016. (Photo: Adrian Wyld/CP)—Some deregulation. She said barriers to entry in protected industries needed to come down. Lagarde warned against monopolies and market concentration, and urged policies that promote competition. —Creating consumer demand. As examples, Lagarde saluted Canada's infrastructure spending and its new child benefit geared toward working class parents. "I hope (Canada's plan) can actually go viral," Lagarde said. A new book by the former chief research economist at the World Bank casts the global challenge in darker terms.
Shift from manufacturing to servicesBranko Milanovic writes in, "Global Inequality," that globalized trade has been good for the vast majority of humans and led to greater equality between societies. However, he describes increased inequality within societies as a dangerous force. He identifies one group as the biggest loser of globalization: the lower-middle-class of right countries. He writes that it's happening for a variety of reasons — trade, new technology, and sociological factors like people increasingly intermarrying within their own economic class. And he draws from economic history to argue that these are perilous times. Milanovic says we're living through what he calls the Second Kuznets curve — named after the American economist Simon Kuznets. The first was the turn of the 20th century, as labour shifted from farming to manufacturing. Now it's a shift from manufacturing to services.
'Rising inequality' spurs strifeHe warns of a historical cycle: growing inequality, political instability — then war, followed by greater equality. He points to the growth of far-right parties in Greece, Finland and France as an alarming signal. "Rising inequality indeed sets in motion forces, often of a destructive nature, that ultimately lead to its decrease but in the process destroy much else, including millions of human lives," says Milanovic, who is referenced on the first page of the book by Canada's Trade Minister Chrystia Freeland on inequality, "Plutocrats." "Very high inequality eventually becomes unsustainable, but it does not go down by itself; rather, it generates processes, like wars, social strife, and revolutions, that lower it.... (Let's) hope that humanity, facing a very similar situation today as one hundred years ago, will not allow the cataclysm of a world war to be the remedy for the ills of inequality."
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