Davos Briefs: IMF warns against fragmentation

NEW YORK • The International Monetary Fund (IMF) has warned against global economic fragmentation as a consequence of Russia's invasion of Ukraine, saying that undoing decades of integration will make the world poorer and more dangerous.

Nations should lower trade barriers to alleviate shortages and lower prices, after more than 30 countries restricted trade in food, energy and other key commodities, IMF managing director Kristalina Georgieva said in comments ahead of the World Economic Forum in Davos this week.

Ms Georgieva made the comments in a blog post with Ms Gita Gopinath, the fund's first deputy managing director, and Ms Ceyla Pazarbasioglu, the head of the strategy, policy and review department.

"The costs of further disintegration would be enormous across countries," they said.

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Tackle rising inequality, says Oxfam

LONDON • Governments need to take urgent action to tackle rising inequality which emerged over the Covid-19 crisis, with a surge in energy and food prices ramping up pressures on millions of people around the world, Oxfam said yesterday.

The report, released by the Nairobi-based charity, found the number of billionaires had risen by 573 to just under 2,700 from 2020.

Their cumulative wealth had risen by nearly US$3.8 trillion (S$5.2 trillion) to US$12.7 trillion, the charity found, analysing data from Forbes.

Those in the food and energy sector enjoyed a windfall in revenues from soaring commodity prices. Meanwhile, the combination of Covid-19, rising inequality and rising food prices could push as many as 263 million people into extreme poverty this year, Oxfam said, adding that this reversed decades of progress.

REUTERS

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Bankers not rushing back to office

DAVOS • Credit Suisse chief executive Thomas Gottstein does not think banks will ever return to working full-time from the office.

"It is unrealistic, and it is not what employees want," he said in an interview. "We are in a soft way trying to encourage people to come back, but it is counterproductive if you push too hard."

Based on the company's policies, about 60 per cent of employees should be working from the office, but the true number is 37 per cent, and Mr Gottstein indicated there is not much that can be done to force people back.

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