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A New Deal Against Spreading Economic Insecurity

Article no: EN20080710-Article-4.2-2008

A New Deal Against Spreading Economic Insecurity

Recent optimism that the corner was being turned on poverty thanks to faster growth in emerging markets and even some very poor economies is turning to anxiety, as the global economy downshifts, prices spike and weaknesses in formal-sector employment are exposed. In advanced countries also, economic insecurity is associated with rising inequality, indebtedness and the squeezing of social provisioning, according to the new World Economic and Social Survey, published by the United Nations (see reference). WDEV summarises the report.

Left to their own devices, markets are not delivering the desired levels of economic security, UN economists argue. They advocate steps to narrow the pendulum swings of economic cycles, reduce dependence on debt and finance instruments for economic growth, tailor macroeconomic policies to development priorities, and inject new life in to multilateralism. Repairing the social contract is a challenge for policy makers everywhere, the report contends ...

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