A new global economic vision is needed: UN body

Ahram Online, Tuesday 7 Feb 2012

A report of the UN Conference on Trade and Development calls for world leaders to abandon prevailing economic wisdom and establish a global new deal

After an economic crisis, further problems looming and popular uprising in more than one country, the leaders of the world are invited to rethink their economic policies.

 "A true break" with the prevailing thinking behind the global economic system over the past thirty years, and a shift to a reformed system of "development-centred globalisation" that allows more stable and inclusive economic progress is needed, Supachai Panitchpakdi, the secretary-general of the United Nations Conference on Trade and Development (UNCTAD) said in a report.

The report, released on Tuesday and entitled "Development-led globalisation: towards sustainable and inclusive development paths" said that "neither muddling through nor a return to business as usual will get things back on track." It urges decisive international and national steps to establish a "global new deal."

The report rejected the so called finance-driven globalisation which the authors described as the dominant pattern of international economic relations during the past three decades.

"In fact, the past thirty years have seen a persistent slowdown in global growth, weaker investment performance in many countries, and a sharp rise in income inequality almost everywhere. Moreover, describing the global economy as a natural system with a logic of its own ignores the policy choices underpinning it," according to the report.

The report is a substantive contribution to the UNCTAD quadrennial conference to be held in Doha, Qatar, from 21 to 26 April. 

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