In particular, it is indispensable to reinforce the adjustment mechanisms and redistribution policies that can reduce the social burden of structural transformations, especially among the most disadvantaged. These include policies that favor labor mobility, while ensuring an adequate social safety net, along with income support for displaced workers that does not discourage labor market participation and foster poverty traps.
To address beyond-the-border challenges to GVC participation, as well as enhance support for regional integration, the WBG should devote more attention to trade policy. For instance, helping countries maximize the benefits of the African continental free trade agreement would be a step in the right direction. In view of economies’ increased synchronization, the World Bank may also want to consider multi-country interventions.