In this multimedia teaching resource, filmed during a Vi videoconference with affiliate Kenyan member, Moi University, Alex Izurieta, of UNCTAD's Division on Globalization and Development Strategies, presents the findings of UNCTAD's latest Trade and Development Report.
"Five years after the onset of the global financial crisis, the world economy remains in a state of disarray," Izurrieta said. "If we want developing countries to follow a sustainable growth path, we need to re-think the sources of growth."
A key source of economic growth is demand stemming from labour income, he explained. Policies which focus on wages (which are a source of consumption and eventually investment) are therefore essential to achieve a sustainable growth path. To complement, the public sector also needs to invest in welfare and infrastructure.