Leaders of IMF and World Bank defend globalization

WASHINGTON -- World finance leaders on Thursday defended globalization against an assault from President Donald Trump and European populists.

They argued blocking free trade would hobble economic growth instead of saving jobs from foreign competition.

World Bank president Jim Yong Kim told journalists freer trade and more openness were "critical for the future of the world."

Christine Lagarde, the managing director of the International Monetary Fund, said the answer to the wave of populism gaining support in many countries was to work for "more growth and better growth" in the world economy.

Lagarde and Kim spoke at the opening of three days of discussions among global finance leaders representing the 189 countries that are members of the IMF and its sister lending organization, the World Bank.

The spring meetings, which also will include discussions today among finance ministers and central bank leaders from the Group of 20 major economic powers, were likely to be dominated by talk over the Trump administration's efforts to reduce America's huge trade deficits, which Trump during the presidential campaign blamed for the loss of millions of good-paying factory jobs.

The United States will be represented at the meetings by Treasury Secretary Steven Mnuchin and Federal Reserve Chair Janet Yellen.

Trump tapped into a rising backlash against free trade during the campaign, pledging he would impose punitive tariffs of up to 45 percent on countries such as China and Mexico, which he blamed for pursuing unfair trade practices that were hurting American workers.

While he had said he would brand China a currency manipulator immediately on taking office, the administration sent Congress a report last week that found China was not manipulating its currency.

The Treasury report put China and five other nations including Japan and Germany on a "monitoring list" that will subject them to increased consultations aimed at lowering their large trade surpluses with the United States.