United Nations Radio

The United Nations Conference on Trade and Development, UNCTAD, is calling for economic incentives on a global scale to help reverse the economic downturn.

world economy

UNCTAD says global economic growth rate will decline to one per cent or even lower in 2009, with the impact of the global economic downturn being felt in both developed and developing economies. Patrick Maigua sent us this report from Geneva.

In its World Economic Situation and Prospects report, UNCTAD predicts more gloom for the global economy during 2009 with growth in the global economy coming to a near standstill and in the worst-case scenario registering negative growth. UNCTAD says while developed economies will sink deeper into recession, developing economies will see a reversal of the robust growth registered between 2002 and 2007 leading to a major setback in the progress made in poverty reduction. Heiner Flassbeck is the head of globalization and development strategies division at UNCTAD.

"There is unfortunately nothing at the moment where we can say this is positive or this is giving a positive stimulus. The only positive thing is that countries and policy makers all over the world have now understood how serious the situation is and are starting to fight in my opinion much too late against this global recession."

Mr. Flassbeck says major economic incentives were needed at the global level to reverse the economic downturn. He says the incentives must be taken in an internationally concerted manner in order to prevent the world economy from falling into a much deeper and more prolonged recession. UNCTAD is also calling for fundamental reforms to address weaknesses in the global financial system to reduce risks of a recurrence of such a devastating crisis in the future.

Patrick Maigua, United Nations Radio Geneva.

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