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Heiner Flassbeck, Director of UNCTAD's Division on Globalization and Development Strategies, explains the factors at the origin of the current economic crisis and outlines policy alternatives to respond to the global crisis with "global answers."

Beginning with the subprime credit collapse and the unwinding of speculative positions in the stock, financial and commodities markets, Flassbeck traces the origins of the crisis through unsustainable price increases and the inevitable crash.

The crisis originated in developed countries but the developing ones ─ in particular the Least Developed Countries ─ are the hardest hit due to the combined effect of falling commodity prices, cancelled exports orders and insufficient means to provide financial stimuli to their economies, he says.