Ministerial Session 1 - Adapting LAC economies to a new international trade context
Jun 23, 2022 | 5:00 PM - 6:15 PMMinisterial Sessions
Jun 23, 2022 | 5:00 PM - 6:15 PM
Ministerial Sessions
Description
Structural transformation caused by international trade, or trade reforms that open up sectors to foreign competition, are desirable for the aggregate economy as they strengthen productivity and reduce misallocations, which are often essential explanations for stagnant productivity growth or competitiveness challenges. At the same time, such transformations move jobs across firms, sectors and regions, creating challenges for workers. In this context, well-designed policy packages can go a long way to support workers in the transition and help them grasp new opportunities. This session will overview the existing literature on trade adaptation policies outlining some guiding principles that can help to shape the design of such policies, and discussing and sharing the lessons learnt from past experiences. Policies should provide active support to workers in the form of smart and well-designed policy packages, without standing in the way of the necessary adjustments. Designing these policies can be challenging, but lessons from international experience can help in their design.
