Retooling
global economy: UN calls for major overhaul
By
TII News Service
NEW
YORK, JUNE 30, 2010: THE UN
has called for a major restructuring of the existing machineries for
international finance, aid and trade in order to overcome the chinks
exposed by the global economic meltdown.
The
World Economic and Social Survey 2010 notes that getting ‘back
on track’ will require significant reforms in global economic governance
and new thinking to put the world on a more sustainable path of development.
“This
year’s report looks at the prospects for post-crisis global
development and concludes that a major rebalancing of the global economy is
needed to make it sustainable,” said Rob Vos, the Director of the Development
Policy and Analysis Division of the Department of Economic and Social Affairs.
Mr
Vos has said that one of the main messages in the report is that many of
the global crises in recent years – such as the food, fuel and financial
crises – are
to a large extent due to major systemic failures in the global economy and
weaknesses in the mechanisms for global governance.
The survey – entitled “Retooling Global Development” – notes
that the financial crisis provides an opportunity to re-examine and reform
the system of global governance so that economic interdependence can be harnessed
to overcome poverty instead of being the source of instability and greater
inequalities.
International aid and trade processes must be reformed to ensure that governments
have the needed policy space to experiment with solutions appropriate to the
local situation.
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