UN Agency Proposes “Global New Deal” That Promotes Inclusive Economies

Failure to “tame” unregulated finance threatens global efforts to build inclusive economies, UN trade body, UNCTAD, warned on Thursday.

Its latest report proposes “a global new deal” aimed at addressing instability and inequality stemming from the 2008 financial crisis.

The UNCTAD Trade and Development Report 2017: Beyond Austerity – Towards a Global New Deal finds that total banking sector assets have more than doubled in most countries over the past decades.

It estimates that the banking sector in developed countries totals US$100 trillion, exceeding global income.

Similar trends have been seen in developing and transitioning economies.

UNCTAD says this situation has contributed to widening income inequality and rising indebtedness.

The report contains seven chapters which look at trends, challenges and issues at stake, such as increasing women’s participation in the work force and the greater use of robots in industrialization.

The final chapter proposes “a global new deal” to correct imbalances “so that social inclusion goes hand in hand with economic prosperity, shared technological progress and a healthy environment.”

Source: Dianne Penn, United Nations