This piece comes straight from Duncan Green’s post on a report by the UN/Stiglitz Commission for reforming globalization.
Ten immediate measures are essential for global recovery.
1. All developed countries should take strong, coordinated, and effective actions to stimulate their economies, dedicating 1.0 per cent of their stimulus packages, in addition to traditional official development assistance commitments.
2. Developing countries need additional funding. Such funding could be provided by an issuance of Special Drawing Rights…. In addition regional efforts to augment liquidity should be supported.
3. Mobilizing Additional Development Funds by the Creation of a New Credit Facility. Given the need for rapid response, the new credit facility might be more quickly established under the umbrella of existing institutions, such as the World Bank, where efforts are underway to remedy existing inadequacies in governance and lending practices, or in Regional Development Banks where developing countries have more equitable representation. [note absence of any role for IMF!]
4. Developing Countries need more policy space. There are asymmetries in global economic policies—countercyclical policies are pursued by developed countries, while most developing countries are encouraged or induced to pursue pro-cyclical policies.
5. The lack of coherence between policies governing trade and finance must be rectified.
6. Crisis response must avoid protectionism
7. Opening advanced country markets to least developed countries’ exports
8. Learning from Successful Policies to undertake Regulatory Reforms.
9. Coordinating the Domestic and Global Impact of Government Financial Sector Support
10. Improved coordination of global economic policies. Following the successful example of the Intergovernmental Panel on Climate Change (IPCC), a similar panel could be created to offer consultancy to the General Assembly and ECOSOC, but also to other international organizations to enhance their capacity for sound decision-making in these areas.
