Rubin warns isolationism could harm U.S. economy
WASHINGTON, June 4 (Reuters) - The United States needs to play a strong leadership role in the world economy if it wants to avoid damaging its economic and national security interests, U.S. Treasury Secretary Robert Rubin said on Thursday.
In a speech to the Washington International Trade Association, Rubin warned against economic isolationism and said public support for the administration's ''forward-looking international economic policies'' appeared to be waning.
''Despite the success of the President's international economic policy ... we have seen both an erosion of the traditional bi-partisan base of support for international economic engagement in recent years, and, at the same time, a re-ignition of one historical strain in American thought, a rejection of the outside world,'' he said according to his prepared remarks.
Rubin cited the rejection of fast-track trade authority for President Clinton by Congress last year, the struggle to win support for extra funding for the International Monetary Fund and the backlog in U.S. dues to the United Nations.
The administration has been trying to convince a skeptical Congress to provide $18 billion to replenish IMF resources drained by multibillion-dollar rescue deals for Indonesia, South Korea and Thailand.
''All of this has enormous consequences to our economic well-being and our national security,'' Rubin said, adding that the United States' economic performance was ''inextricably'' linked to developments in the rest of the world economy.
Rubin suggested the country needed to meet two basic challenges to rebuild support for forward-looking policies.
The first priority was to provide better opportunities for Americans in inner cities and rural areas by offering better education, training and health programs, he said.
Secondly, Rubin said both public and private sector officials needed to do a better job of bringing across the importance of U.S. participation in the world economy.
''Our leadership in the global economy must be grounded in public support, and what we all need to do is build that public support,'' he said.
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