The UAE, represented by the Ministry of Finance, will participate in this week’s IMF and World Bank Group semi-annual meeting in Washington amid a backdrop of a US administration fundamentally opposed to some of the IMF’s most important positions.
“These meetings represent an interactive platform to discuss key topics and the latest developments on a regional and global level, as well as offer the opportunity to exchange expertise,” said Obaid Al Tayer, Minister of State for Financial Affairs, who will head the UAE delegation, which also includes Mubarak Al Mansouri, the Central Bank governor.
The Trump administration is calling on the IMF to pay close attention to member countries’ efforts to affect currency exchange rates and other imbalances, particularly in trade, that harm the United States. Such antagonism is in stark contrast with the Obama years, when the IMF found a receptive audience at the White House in calling for raising the US minimum wage, combating income inequality or giving a greater voice to emerging countries.
The Trump administration has vowed to dismantle much of the financial regulation put in place after the 2008 financial crisis. But the IMF says excessive deregulation could “increase the likelihood” of another meltdown.
The IMF warns of the economic dangers of climate change. But the Trump administration casts doubt on its existence and seeks to revive its coal industry while threatening to withdraw from the 2015 Paris Agreement on emissions.
It is nevertheless the volatile question of global trade that holds the greatest potential for friction. Since the US presidential campaigns, the IMF has repeatedly warned about the dangers of “inward-looking” protectionist measures and defended multilateralism.
“The current changes in the global economy and the future of governments require joint international efforts to strengthen the economic growth, support the economic and investment development and build a stronger and more sustainable global economy for future generations,” said Mr Al Tayer.
* With Wam, AFP
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