Free trade to help future global growth: ex-IMF official

SEOUL, June 23 (Yonhap) -- The global economy is expected to grow slower in the
future even if it recovers from the current crisis, but efforts to remove
protectionism will help foster growth, a former vice president of the
International Monetary Fund said Tuesday.

Anne Krueger, who teaches at John Hopkins University, also stressed the efficient
use of the labor force will be of "utmost importance" in light of fast-aging
population and rising borrowing costs.
"Global outlook is for growth no faster and possible slower than in the past very
successful years. Real interest rates are almost certain to be higher," she told
a conference co-hosted by Seoul's finance ministry and the World Bank. The
three-day gathering kicked off on Monday.
"Outer oriented development strategies will still bring benefits. Avoidance of
protectionism and strengthening of the open multilateral trading system will help
all," she added.
The professor also emphasized the importance of efficient use of labor, calling
for more investment in education, health and technical training.
"With higher real interest rates and more expensive capital, efficient use of
unskilled labor and measures to improve the productivity of labor will be of
utmost importance. This means health and education, as well as technical
training," the professor said.
"Investments in health, education and more generally worker productivity have
long gestation periods. If the authorities wait, opportunities may be lost," she
added.
kokobj@yna.co.kr
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