In this Vi multimedia presentation filmed during a videoconference with Russian members, Heiner Flassbeck, Director of UNCTAD's Division on Globalization and Development Strategies presents the findings of this year's Trade and Development Report, whose main topic, inequality, is tightly entwined with the current global economic situation.
"The problem that the world is facing at this moment of time, and what we are recommending to overcome the economic stagnation and the non-recovery in developed countries, and some developing countries, is pretty much the same," he said. "And it's certainly not the mainstream view."
According to Flassbeck, the point of view that resorts to traditional instruments of macroeconomic policy to overcome stagnation and recessionary tendencies, no longer applies, as the current economic environment is characterized by diminished expectations from private households in terms of their income.
"In this situation, the most important part of any recovery of growth in the world economy ... has to be private consumption."