| UN report calls for overhaul of international institutions |
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The report proposes a new system of international and regional funds to aid countries which encounter economic difficulties, as well as funds to finance development and climate change adaptation. It states that “for an effective more sustainable rebalancing of the global economy much closer coordination is needed across the trading system, the new regime for international financial regulation, the global reserve system and the mechanisms for mobilizing and channelling development finance and climate funding.” So far, the G20 has concentrated on coordinating financial reforms between countries; while some significant reforms have been introduced to the international institutions, the far-reaching overhaul which the WESS claims is necessary has been avoided. The report also recommends far greater coordination of development cooperation. It notes that in the last ten years “the average size of aid projects declined by two-thirds, while the number of projects increased six fold globally.” It states: “Fragmentation is not helping effectiveness. Yet, many poor countries remain in great need of development assistance to have a better chance of overcoming poverty and poor health. Moreover, climate change is especially affecting the poorest of nations and will require at least a hundred billion dollars every year in new investments in the coming decades. More resources will be wasted if additional assistance does not accompany reduced fragmentation and increase effectiveness.” Source:  |
The World Economic and Social Survey 2010 (WESS), launched by the UN on June 29, sets out a number of ambitious proposals for restructuring the international institutions governing global finance, aid and trade in order to combat the economic challenges of the coming decades. According to the report, “returning to an unsustainable path of global development" is not an option — “sustained and widespread future prosperity will require major reforms in global economic governance and new thinking about global economic development”.
