Learning from China’s export success
August 06, 2010
The World Trade Organization is now lending its support to the fight against protectionist temptations of the kind that inevitably put governments under pressure in times of economic downturn.
“We have sought to do this by ensuring transparency in the measures taken by them to respond to the crisis,” said WTO Director-General Pascal Lamy. “I believe that although the record is not perfect, we have helped to keep significant outbreaks of protectionism at bay. These efforts will become even more importat if there is any faltering in the recovery or if high levels of unemployment persist for too long.”
In some economies, including China, he noted, stimulus packages have been instrumental in preventing further deterioration in output while paving the way to recovery, even at the cost of inflating public deficits. Many developing countries have not been able to afford bailout packages for their ailing industries or stimulus packages, or the expansion of social safety nets to those who have lost their jobs. Hence, most economies in the world, both developed and developing, urgently need other sources of growth — sustainable engines of growth.
“This is where trade can be an important part of the story, in the long-run as well as in the short to medium-term,” noted Lamay.
We agree that this is certainly a lesson we can draw from China’s remarkable export successes.
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