World Economic and Social Survey 2007: THIS BACK PAGE TO BE UPDATED/WAITING FOR TEXT World Economic and Social Survey 2010: Survey Social and Economic World Greater longevity is an indicator of human progress in general. At the same time, increased life expectancy World Economic and Social Survey 2010 and lower fertility rates are changing the population structure worldwide in a major way: the proportion of older persons is rapidly increasing, a process known as population ageing. The process is inevitable and is already advanced in developed countries and progressing quite rapidly in developing ones. Retooling Global The World Economic and Social Survey has also come of age as it celebrates the sixtieth anniversary of the publication, which first appeared in 1948 (then called the World Economic Survey). Development Appropriately enough, the 2007 Survey analyses the implications of population ageing for social and economic development around the world, while recognizing that it offers both challenges and opportunities. Among the most pressing issues is that arising from the prospect of a smaller labour force having to support an increasingly larger older population. Paralleling increased longevity are the changes in intergenerational relationships that may affect the provision of care and income security for older persons, particularly in developing countries where family transfers play a major role. Thus, societies must also ensure that they meet the particular needs of older populations in terms of the requisite health care and appropriate living conditions. At the same time, it is also necessary for societies to fully recognize Development Global Retooling and better harness the productive and social contributions that older persons can make but are in many instances prevented from making. The Survey argues that the challenges are not insurmountable, but that societies everywhere need to put in place the policies required to confront those challenges effectively and to ensure an adequate standard of living for each of their members, while respecting and promoting the contribution and participation of all. Related publications available from the United Nations: World Economic and Social Survey 2006: Diverging Growth and Development Sales No. E.06.II.C.1 ISBN 92-1-109151-9 Pages: 212 Price: $60.00 World Economic Situation and Prospects 2007 Sales No. E.07.II.C.2 ISBN 978-92-1-109153-3 Pages: 176 Price: $30.00 Overcoming Economic Vulnerability and Creating Employment: Report of the Committee for Development Policy on the Eighth Session (20-24 March 2006) Sales No. E.06.II.A.5 ISBN 92-1-104562-2 Pages: 80 Price: $12.00 USD 65 ISBN 978-92-1-109161-8 Nations United Printed at the United Nations, New York 10-28729—May 2010—5,265 United Nations E/2010/50/Rev. 1 ST/ESA/330 Department of Economic and Social Affairs World Economic and Social Survey 2010 Retooling Global Development United Nations New York, 2010 DESA The Department of Economic and Social Affairs of the United Nations Secretariat is a vital interface between global policies in the economic, social and environmental spheres and national action. The Department works in three main interlinked areas: (i) it compiles, generates and analyses a wide range of economic, social and environmental data and information on which States Members of the United Nations draw to review common problems and to take stock of policy options; (ii) it facilitates the negotiations of Member States in many intergovernmental bodies on joint courses of action to address ongoing or emerging global challenges; and (iii) it advises interested Governments on the ways and means of translating policy frameworks developed in United Nations conferences and summits into programmes at the country level and, through technical assistance, helps build national capacities. Note Symbols of United Nations documents are composed of capital letters combined with figures. E/2010/50/Rev.1 ST/ESA/330 ISBN 978-92-1-109161-8 United Nations publication Sales No. E.10.II.C1 Copyright © United Nations, 2010 All rights reserved Printed by the United Nations Publishing Section New York iii Preface The global financial crisis has exposed serious weaknesses not only in the world economy but also in global economic governance. Fortunately, a remarkable spirit of multilateralism has prevailed in the responses to this upheaval. Countries have refrained, by and large, from resorting to protectionist measures. Governments have enacted stimulus packages, kept interest rates low and provided additional finance to the International Monetary Fund and the World Bank that is aimed at helping countries in need. These efforts stand in sharp contrast to the approach of the 1930s, when beggar-thy-neighbour policies had pushed the global economy into a prolonged depression and deepened the political crisis that led to the Second World War. Still, this encouraging multilateralism cannot hide the shortcomings in in- stitutions and rules that were shaped, for the most part, more than 60 years ago. Since then, world conditions have become much more complex and there is much greater in- terdependence across nations. International economic relations have also changed, with a considerable number of developing countries exerting a much bigger influence on the world economy—a trend that is likely to continue. At the same time, however, we must all be concerned that an even greater number of developing countries are falling behind, and that extreme poverty remains widespread. The global food and financial crises have caused significant setbacks in efforts to achieve the Millennium Development Goals, and have been a painful reminder that a stable global economic environment is a critical pre- condition for human progress. In the decades ahead, we can expect climate change and demographic changes, including migration and population ageing, to further reshape the patterns of global development. This year’s World Economic and Social Survey takes stock of development challenges and identifies deficiencies and gaps in global economic governance mecha- nisms. It also points out promising directions for reform, including strengthening govern- ment capacities for formulating and implementing national development strategies; doing more to ensure that official development assistance is aligned with national priorities; and strengthening the international trade and financial systems so that countries with limited capabilities can successfully integrate into the global economy. Pursuing these and related initiatives will not be easy: we need new types of thinking and a new balance between decision-making processes at the national and global levels. In that spirit, the Survey offers ideas on how the international community can steer a course towards achieving a more balanced and sustainable globalization and a safer, more prosperous and more just world for all. I therefore commend the body of information and the analyses presented here to a wide global audience. BAN KI-MOON Secretary-General iv Acknowledgements The World Economic and Social Survey is the annual flagship publication on major development issues prepared by the Department of Economic and Social Affairs of the United Nations Secretariat (UN/DESA). This year’sSurvey was prepared under the general supervision and leadership of Rob Vos, Director of the Development Policy and Analysis Division (DPAD) of UN/DESA. Manuel F. Montes led the team that prepared the report. The core team at DPAD included Christina Bodouroglou, Nazrul Islam, Alex Julca, Mariangela Parra-Lancourt, Vladimir Popov and Shari Spiegel. Administrative and statistical support for the overall report were provided by Lydia Gatan and Nicole Hunt. Substantive inputs were also received from Frank Schroeder of the Financing for Development Office and Marion Barthélemy of the Office for ECOSOC Support and Coordination of UN/DESA. We gratefully acknowledge background research contributions by Tony Addison, Channing Arndt, Sarah Cook, Giovanni Andrea Cornia, Jane D’Arista, Derrese Degefa, Geske Dijkstra, Daniel Drache, Louis Emmerij, Korkut Erturk, Valpy FitzGerald, James Galbraith, Merilee Grindle, Sara Hsu, Nagesh Kumar, Thandika Mkandawire, Deepak Nayyar, Emmanuel Nnadozie, Alfredo Saad-Filho, Finn Tarp, Lance Taylor, Daniel Titelman, John Toye and Rolph van der Hoeven. The report also benefited from discussions with staff of the Economic Commission for Africa (ECA), the Economic and Social Commission for Asia and the Pacific (ESCAP), the Economic Commission for Latin America and the Caribbean (ECLAC), the United Nations Conference on Trade and Development (UNCTAD), the International Labour Organization (ILO), the World Institute for Development Economics Research of the United Nations University (UNU- WIDER) and the United Nations Research Institute for Social Development (UNRISD). In addition to these contributors, we also owe thanks for the insights provided by other participants at two workshops organized within the framework of the preparation of this report, including Yilmaz Akÿuz, Tariq Banuri, Roy Culpeper, Martin Khor, Richard Kozul- Wright, José Antonio Ocampo, Rizal Ramli, Shahra Razavi and Lan Xue. Helpful overall guidance was provided by Jomo Kwame Sundaram, Assistant Secretary-General for Economic Development at UN/DESA. v Overview Globalization at a crossroads The global economic crisis of 2008-2009 exposed systemic failures in the workings of financial markets and major deficiencies at the core of economic policy making. The