In its annual report on development and trade, published at the end of September 2019, the United Nations Conference on Trade and Development (UNCTAD) calls for a broader policy response to influence the course of the world economy. An informative document, at a time when the EU is working on its own Green Deal (see EUROPE 12337/11, 12340/18).
Noting the evils undermining the era of "hyperglobalisation" - financial insecurity, economic polarisation and environmental degradation, UNCTAD also highlights the "worrying erosion of political confidence", "at the very time when collective action is needed to build a better future for all".
In the current global environment, where austerity is the macroeconomic option by default, the authors encourage a "global green expansion".
Governments must regain their room for manoeuvre to act and tackle four macrostructural problems head-on: the declining share of labour income; the erosion of public spending; the weakening of productive investment; and the increase in carbon dioxide in the atmosphere, the text states.
This includes, inter alia, the adoption of "more progressive" tax provisions, "bold" industrial policies, credit extensions, financial regulation, a new social contract and changes in international trade and investment policies.
Indeed, "international coordination is essential", the authors also stress, both for the mobilisation of the necessary resources and for the "expansion of the political space necessary to manage the changes involved", in particular through better control of capital or taxes on the digital economy.
To consult the report: https://bit.ly/2pIogx7 (Original version in French by Hermine Donceel)