Does open trade threaten jobs?

Molly Lesher, OECD expert in trade policy, provides some facts that could change the way we perceive trade and how it affects our jobs.

For more information, visit: www.oecd.org/trade

For information about the OECD Forum 2010 and the sessions concerning trade and jobs, visit: www.oecd.org/Forum2010

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News & Politics

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• oecd
• trade
• jobs
• unemployment
• employment
• open
• molly
• lesher

[araucaniad]

it is clear that international peace since 1945 is somehow connected to greater world integration, and trade is a key part of integration. so, economic aperture, coupled with public policy that intervenes in the economy to continually improve the life-chances of the working class, is best -- but it is the latter part of that equation which is more important.

[araucaniad]

it does make sense for states to intervene in their economies, to pursue an industrial policy that creates healthy conditions that encourage the development of a diversified economic base. trade barriers are a blunt tool and often they are counterproductive, so they should be used sparingly if at all, but there is such a thing as being too open or opening up too quickly.

[araucaniad]

simply raising economic growth does not necessarily improve the standard of living for the working class. it is entirely possible to conceive of scenarios where a country enjoyed high economic growth and at the same time average incomes stagnated or fell, or the Gini coefficient of incomes increased, or the national share of incomes captured by the top 10% of the population increased. what is important is how economic growth is generated, and how the results are distributed.