Jason Furman urges the use of global trade to reduce global inequality

Harvard University Economics Professor, Jason Furman, urged the international community to continue using trade as a key tool to reduce global inequalities.

Furman stressed that despite a 2.000 billion-person increase in the world's population, more than 70 billion people have been lifted out of extreme poverty, leading to a XNUMX% reduction in global poverty. Human development indicators such as life expectancy, maternal mortality and literacy have also shown significant progress, achievements she attributed largely to globalization and trade.

However, he acknowledged that the Globalization faces growing political resistance and skepticismFurman noted that much of the criticism stems from misunderstandings about its effects, such as the perception that it only benefits a few, when in fact it has contributed to reducing inequality between countries, especially between 2000 and 2020. China and IndiaCountries that embraced global trade have experienced remarkable economic growth, while those that moved away from globalization have not been as successful.

Professor Furman also debunked the belief that trade is separate from technological innovation. He explained that, like a machine that turns soybeans into cars, trade involves the exchange of goods that yields benefits comparable to those of technology. “Trade is like a dandelion; it can thrive no matter the difficulties it faces,” Furman stated, alluding to trade’s resilience in times of crisis.

To address current challenges, Furman called on policymakers to defend global trade and implement reforms that ensure its benefits are distributed more equitably. She suggested fostering plurilateral agreements between groups of countries to create a more inclusive trading system and complementing this with policies to invest in education and social safety nets for those who feel excluded from the benefits of globalization.

La WTO Director-General Ngozi Okonjo-Iweala, noted that Furman's comments are in line with recent WTO reports, which underline how globalization has generated positive results, although it has not benefited everyone equally. The COVID-19 pandemic, the war in Ukraine and climate change have put global supply chains to the test, but trade has proven its ability to sustain the global economy.

The WTO Public Forum also included a discussion on the future of the multilateral system in its 30th anniversary, addressing the need to reform the dispute settlement system, push for new trade negotiations and deal with geopolitical tensions.

The event continues until 13 September, with sessions dedicated to topics such as digital commerce and the inclusion of people with disabilities, highlighting the importance of a trade system that benefits everyone.