UN says global economic stimulus unbalanced
The United Nations’ Department of Economic and Social Affairs expects world trade to drop by 11 percent this year, the largest decline since the Great Depression, criticising the uncoordinated response to the global financial crisis.
DESA’s report noted: “At present the stimulus is very unbalanced. Eighty percent of the stimulus is concentrated in developed countries, while most developing countries lack the fiscal space to provide social protection and counteract the consequences of the crisis.”
A more balances response would mean an additional $500 billion for development finance in emerging economies, it suggested.
Developing nations currently struggle with the crisis because investors shy from ventures they view as more risky and they tend to produce commodities for which global demand has dropped.
The department also reported that more than 100 million could stay or fall into poverty as the global economy contracts, up to 80 million from Asia, another 16 million in Africa and 4 million in Latin America.
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