In this paper it is argued that the economics of the Globalisation Adjustment Fund are weak and its politics questionable, hence making its relevance doubtful and poorly providing for meaningful adaptation. A case is subsequently made for the establishment of a better financed Labour Market Modernisation Fund aiming at stimulating national labour market reforms, via rewarding effective policy effort and alleviating political economic constraints.

Contents:

1. Introduction
2. Why the Globalisation Adjustment Fund is not a very good idea
3. Why we need a Labour Market Modernisation Fund and how it would work
4. A concluding remark
5. References