The UNCTAD has just published “Trade and Development Report 2013: Adjusting to the Changing Dynamics of the World Economy.”
According to the study the world economy is experiencing a structural shift, and countries must introduce fundamental changes in their growth strategies in order to adjust to it. In particular, developing and transition economies that have been overly dependent on exports should give a greater role to domestic and regional demand.
The world economy cannot revert to pre-crisis growth, which was built on unsustainable global demand and financing patterns.
Developed countries should act more decisively to address the fundamental causes of the crisis, and should move away from contractionary fiscal policies so as not to further undermine their already slow economic growth.
Nevertheless, demand growth in developed countries is likely to remain weak for a protracted period of time. Thus, developing and transition economies whose development strategies have been overly dependent on exports should move towards a more balanced growth strategy. They should give greater weight to domestic and regional demand.
Download the report here.