UN upholds China as economic model
The UN's trade and development agency on Thursday called on poor nations to be more interventionist and to strengthen their national economies in a similar manner to China.
By Agencies |
GENEVA: The UN's trade and development agency on Thursday called on poor nations to be more interventionist and to strengthen their national economies in a similar manner to China.
The annual report from the UN Conference on Trade and Development (UNCTAD) said standard reforms and deregulation promoted by the Washington-based World Bank and International Monetary Fund (IMF) had failed to create enough growth or cut poverty.
The advocacy of government intervention counters dominant economic thinking in many Western countries which holds that open economies and free trade offer the best solution for the poor.
"The market-based reforms pursued in the majority of developing countries since the early 1980s have not lived up to the promises of their proponents," the 'Trade and Development Report 2006' said.
Now steered by former World Trade Organisation chief Supachai Panitchpakdi, UNCTAD advocated more leeway for national government intervention on foreign exchange markets, interest rates, trade, capital flows and income support, on top of efforts to achieve price stability.
The agency's senior globalisation official, Heiner Flassbeck, highlighted China's sustained sharp growth in recent years, combined with low interest rates and low inflation.
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