The growing indebtedness observed globally is closely linked to rising inequality. The two have beenĬonnected by the growing weight and influence of financial markets, a defining feature of hyperglobalization.īanks becoming too big to fail came to epitomize the reckless neglect of regulators prior to the crisis. But Rapid growth of private indebtedness, particularly in the corporate sector, which needs to be monitoredĬlosely this has, in the past, been a harbinger of crisis. While the public sector in advanced economies has been obliged to borrow more since the crisis, it is the The growing mountain of debt, more than three times the size of global output, is symbolic of that failure. The inequities and imbalances of our hyperglobalized world. Volatile financial flows but behind these threats to global stability is a wider failure, since 2008, to address The world economy is again under stress. The immediate pressures are building around escalating tariffs and Is requested, together with a reference to theĭocument number. A copy of the publicationĬontaining the quotation or reprint shouldīe sent to the UNCTAD secretariat No. E.18.II.D.7 Material in this publication may be freely Territory, city or area, or of its authorities, orĬoncerning the delimitation of its frontiers or The part of the Secretariat of the United NationsĬoncerning the legal status of any country, The expression of any opinion whatsoever on Of the material in this publication do not imply The designations employed and the presentation The bottom line when it comes to infrastructure spending is that it is too important a development matter to be left to the sole responsibility of finance ministries.Ĭomposed of capital letters combined withįigures. Mention of such a symbol indicates a It has suggested that the old debate between balanced and unbalanced growth provides a rich discussion for thinking about those techniques, skills and institutional requirements. It has argued that structural transformation will also need to be accompanied by infrastructure planning. This set out some elements of that agenda. However, this is not inevitable and if history is any guide, public policy, including industrial policy, can help to manage more inclusive and sustainable outcomes.
There are already signs of this happening with the digital revolution. In part, that is because the mixture of creative and destructive forces accompanying such a transformation do not automatically translate into a virtuous growth circle while the rents that are inevitably created in the process can be captured by a privileged group in ways that clog the economic arteries and increase the dangers of a political stroke. Managing structural transformation is a big challenge at all levels of development.