A rising tide of protectionism across the globe is threatening to de-rail the global economic recovery, the chairman of Lloyd’s of London warned last night.
John Nelson said increasing trade barriers were to blame for cross border capital flows falling from $11.8 trillion in 2007 to $4.6 trillion in 2012. He claimed that government’s across the world had imposed three times as many protectionist measures as those aimed at opening up their economies.
He added: “The financial crises have, quite rightly called into question the destructive ease with which capital, unbridled, uncontrolled and unregulated, moved across borders. But any discussion of this should take into account the benefits we have accrued from cross border trade.
“Insurance is perhaps one of the best examples. We are, after all, the positive face of capital moving across borders – where international funds are used to absorb shocks which could otherwise destabilise local communities. So, I would urge governments to consider carefully the benefits of the free movement of capital, goods and services before they erect barriers around their national economies.”Reuse content