The Indian Express (Delhi Edition)
‘No silver bullet for excessive inequality’
POLICYMAKERS ACROSS the world must act now to check inequalities even as there is no “silver bullet” to contain this problem, International Monetary Fund (IMF) chief Christine Lagarde said on Wednesday amid a raging debate here at WEF on widening wealth gap and the resultant rise in populism.
She also said that turning back on globalisation will be a wrong approach.
“Yes and now, the economists would say,” the Managing Director of the International Monetary Fund (IMF) said on whether middle class is in crisis.
“There is this crisis in the advanced economies,” she added.
According to her, the middle class is both growing and shrinking -- growing on a global basis, but shrinking in countries like the US. If there is excessive inequalities, it becomes difficult to achieve sustainable growth, she added. Further, Lagarde said there was a large backlash from several economists including from her own institution when she first talked about inequality in 2013 here at Davos in a plenary session.
“If the policymakers do not listen now, I don’t understand what can be done... There is no silver bullet response to excessive inequality,” she said, adding that turning back on globalisation will be a wrong approach.
She also emphasised that policymakers must listen to the voters. On concerns whether globalisation will take a hit due to the policies of incoming US President Donald Trump, she said, “We have very little by way of detailed information as to what the plan is if there is such thing as a plan.”