In this multimedia teaching resource, UNCTAD’s Alfredo Calcagno presents the findings of the 2014 Trade and Development Report (TDR), subtitled “Global Governance and Policy Space for Development.”
“The important word here is ‘policy space’. It is necessary for governments to have enough room for manoeuvre to address the challenges that have been posed by the crisis,” Calcagno said, referring to the weak global economic growth of the past six years.
Developed countries’ policy mix combining monetary expansion with fiscal austerity and wage restraint produces slow growth with weak employment and asset bubbles, he explained. To break out of this protracted period of low economic growth the TDR recommends policies toward reflation, regulation and redistribution.