São Paulo – The Organisation for Economic Co-operation and Development (OECD) disclosed on Wednesday (23), in Paris, during the organisation’s national forum, in a study that shows that governments that promote the opening of markets and resist the temptation of protectionism have greater chances of stimulating inclusive economic growth and creating better jobs. The research was developed by 10 multilateral organisations that are members of the International Collaborative Initiative on Trade and Employment (ICITE).
In the other direction, according to the OECD, protectionist trade and discrimination policies do not help in the maintenance of jobs, but suffocate the growth and “pressure” the labour market.
The report, named Policy Priorities for International Trade and Jobs, says that trade induces growth of salaries, through its impact in the productivity of companies. The organisation says that workers in countries with open economies earn from three to nine times more than the nations with more closed economies.
This difference may also take place among different sectors in the same country. In Chile, for example, workers in the most open sectors earn, on average, 25% more than in the most closed areas. The Economic Commission for Latin America and the Caribbean (ECLAC), a UN agency headquartered in Santiago, the Inter-American Development Bank (IADB) and the Organisation of American States (OAS) are three of the institutions participating in the ICITE.
“In today’s challenging policy environment of a hesitant recovery and slow job creation, market openness can be a critical element to boost growth and employment,” said OECD secretary general Angel Gurria, in the company press statement.
The study, according to the OECD, demystifies one of the main arguments against market openness, which is the supposed negative impact of imports on jobs. The document says that there is no systemic connection between foreign purchases and unemployment and adds that, on the contrary, foreign trade activities, be they exports or imports, foster greater productivity and the establishment of better paid and more qualified work posts.
In the same line, the study shows that, in developed nations, the outsourcing to developed nations that are producers of intermediate goods and services generate positive effects in labour markets in both cases.
The study also shows that the liberalisation of trade alone is not enough, macroeconomic policies are also necessary, as is a good investment environment, a flexible labour market and a system for adequate social protection.
ICITE also includes the International Labour Organisations, the United Nations Conference on Trade and Development (Unctad), the World Bank, the World Trade Organisation, the African Development Bank and the Asian Development Bank.
*Translated by Mark Ament
