The UNCTAD has just published the “Trade and Development Report 2012”. The study reviews recent trends in the global economy and explores the links between income distribution, growth and development. Global output growth is slowing down. In developed economies, high unemployment, ongoing deleveraging and downward pressures on real wages are causing lack of demand. An exit from recession in crisis-hit countries cannot be left to market forces alone; policies should aim to restore demand, instead of further depressing it with fiscal retrenchment.
The report also briefly addresses some other aspects of inequality, such as gender disparities, wealth distribution and differences in access to education which are relevant for income distribution and require specific policy actions.
The Report further discusses what are widely perceived to be the main structural causes of recent changes in income distribution, including trade, technological change, and finance-led globalization.
Read the full text online.