Furious voters are losing trust in governments and will wreck the world order, warns IMF
Voters are losing trust in globalisation and could tear down the international order which supports world trade, top economists have warned.
Anger in countries such as the US, France and Britain could make the next global downturn far worse, according to the International Monetary Fund.
It is concerned that global organisations and national governments are no longer seen as being on the side of the people.
Anger in countries such as the US, France (pictured) and Britain could make the next global downturn far worse, according to the International Monetary Fund
This could make it harder to stop the next recession blowing up into a full-blown disaster on the same scale as the financial crisis.
The problems were highlighted in a blog by IMF deputy managing director David Lipton.
He wrote: ‘National governance has in many respects fallen into disrepute – witness the turmoil resulting from recent elections in many countries.’
Lipton said this resentment will make it far harder for taxpayers’ money to be used to shore up banks during the next crisis.
And he warned that if a future recession harms ordinary workers and small businessmen, states will come under pressure to financially support these people as they did for the banks in 2008.
This could push up public sector debt to dangerously high levels.