To reduce inequalities in the sharing of the economic benefits of globalization that fuel "anger and bitterness," the Executive Director of the International Monetary Fund pleaded Tuesday in a speech at the prestigious Congressional Library in Washington, DC. 'new multilateralism' and 're-imagined international cooperation'.
IMF boss Christine Lagarde on Tuesday launched a strong call for renewed international cooperation, fearing the advent of an "age of anger" where inequalities could soon surpass those of the "golden age" of the capitalism in the nineteenth century.
In a speech to the prestigious Congressional Library in Washington, the Executive Director of the International Monetary Fund pleaded for a "new multilateralism" that would ensure that "the economic benefits of globalization are shared by all and not just by a few" .
In its view, global trade must be "repaired" : "We must continue de-escalating" trade tensions and improving the trading system, "eliminating distorting subsidies" and protecting intellectual property rights.
"Too much tax revenue on the table"
Lagarde also advocates a new system of international taxation. "Companies now have a global presence, but governments have not found the right tax response," she said, denouncing tax optimization strategies that leave "too much tax revenue on the table" .
Without this "re-imagined international cooperation" , the head of the IMF fears that in 20 years, by 2040, "the inequalities do not surpass what they were during the golden age of capitalism" .
This "age of anger" would see monopolistic giants of technology face weak states, favored categories of the population "able to live up to 120 years when millions of others will suffer from poverty" .
"The gap between aspirations and realities" could "feed anger and bitterness," she warned.
Asserting herself as "an optimist," Lagarde says an "age of inventiveness" is possible, where economies will benefit from renewable energies, greater integration of women into the world of work, and where large corporations would show social responsibility.