chages must be made
UN said in the news that the impact of the global crisis on the poorest countries is likely to be so severe that a radical change in policy is needed. The UN Conference on Trade and Development (Unctad) believes new policy approaches are needed to diversify their economies. The 41 poorest countries will be particularly dependent on aid. And it warns that the crisis is hitting the factors that enabled poor countries to grow strongly in 2006 and 2007.
The department said that the magnitude of the crisis offers both the necessity and an opportunity for change. Crisis is the result of weaknesses in the neoliberal model that has been shaping economic policy for the last three decades which have been magnified by policy failures and lax regulation in advanced countries.
They also believes that the free-market neoliberal approach is no longer relevant to developing countries in the midst of a global recession, and instead is promoting public expenditure to stimulate growth, turning established thinking amongst economic policy-makers on its head.
