But such policies may not be enough on their own to restore growth in some of the most economically distressed countries. The international community will therefore need to continue providing substantial flows of development assistance. More explicit emphasis should be given to promoting sustainable development, alleviating poverty, and encouraging economic reform. Multilateral development banks can play an important role in promoting good governance and the development of small and medium scale private enterprises. And we can promote trade and investment opportunities.
Globalization presents challenges for developed countries as well.
It has been blamed for high unemployment in Europe and the stagnation of real wages in the United States. But increased competition from imports is at most a secondary explanation for the decline in real wages of less skilled American workers. In fact, the deepening of international integration in coming decades should stimulate economic growth in the U.S. and encourage the creation of new, better-paying jobs. During the past 15 years, U.S. exports have risen at a faster annual rate than those of any other G-7 country, including Japan. The United States was the world's leading exporter again in 1995, and our exports support jobs that pay 12 to 18 percent more than comparable positions in non-exporting firms.