IPS

, OCTOBER 2009 (IPS) - World economic growth, as measured by the world's production of goods and services, has slowed abruptly in 2008 and the early part of this year. The contraction in demand led to a slowdown in production, and in international trade. World merchandise trade is projected to fall by a full 10 per cent this year, and foreign direct investment, which fell by 15 per cent in 2008, is projected to drop further, writes Pascal Lamy, Director-General of the World Trade Organisation (WTO).

The impulse to go "local" in answer to the financial crisis must be resisted. In fact, we should continue "going global," for the simple reason that many consumers have seen their purchasing power decline, and are in need of cheaper, more competitive, goods and services, and not more expensive ones produced behind a national tariff wall.

(*) Pascal Lamy, Director-General of the World Trade Organisation (WTO).

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