US Federal Reserve chairman Mr Alan Greenspan said the US should remain at the forefront of opening up international markets for trade, adding it would be a "great tragedy" were the process of globalisation to be reversed.
"Those who protest against globalisation appear too often to be self-designated representatives of developing country interests. These protests, however well-intentioned, are wrong-headed," said Mr Greenspan, in a testimony prepared for delivery to the US Senate Finance Committee.
"The best single action that industrial countries could actually take to alleviate poverty in many developing countries would be to unilaterally open markets to imports from these countries," he said.
"Such countries need more globalisation, not less," Mr Greenspan said.
The Fed chairman said it has been a mistake for supporters of globalisation to promote free trade on the grounds that it would create jobs. Rather, Mr Greenspan said it would be better to argue that globalisation increases standards of living through the effects of competition on productivity.
"It is difficult to find credible evidence that trade has affected a level of total employment in this country over the long run," Mr Greenspan said. He repeated his criticism of US trade laws and negotiating practices as "essentially adversarial".
He said trade is not a zero sum game and both sides clearly benefit when trade barriers are lowered.
AFP