In what may prove to be a defining moment in the global economic agenda, the world’s top economic forum is set to host its first major summit on economic growth and inequality, scheduled for October 28-29.
Anxiety about the future of global capitalism is rising, as the global economy faces unprecedented levels of uncertainty over the direction of economic growth, according to a new report by the International Monetary Fund.
In the latest issue of the IEA’s “Global Economic Outlook,” published today, the IMF warned that global economic growth is unlikely to reach 2 percent, the average for the past decade, until 2030, and the world is heading into a recession that could last until 2025.
Global capitalism, the report said, has a long way to go.
“The world has not only created a vast amount of wealth, but it also created a wealth of anxiety and fear, a global economic crisis that is only likely to worsen,” said IEA director Christine Lagarde.
“We have witnessed the emergence of a new class of billionaires, an unprecedented level of inequality, and a growing sense of social and political unrest.”
In addition to global financial markets, which are under intense pressure to return to their pre-crisis levels, global inequality is also showing signs of spreading.
The report found that while inequality is not the only problem confronting the world, it is by far the most serious, and that it is likely to become even more acute as the next generation of global workers becomes more dependent on capital markets.
While inequality is a global problem, it will have the most profound effects on the world at large, it said, pointing to the fact that inequality is now more prevalent in developed nations than in the developing world.
Inequality is the biggest driver of inequality globally, the study found, with the poorest half of the world earning more than twice as much as the richest half, with more than three-quarters of global income inequality.
With inequality rising at an unprecedented rate, the global financial system has become the biggest contributor to global inequality.
The financial crisis of 2008 was the most severe economic crisis in history, causing a deep economic crisis and a global recession that was the worst in living memory.
With the world still struggling to recover from the economic crisis, the IFA and the IMF believe that there is a need to take action to reduce the growing social and economic stress associated with the current crisis.
“The crisis that we face now is global, and we cannot solve it without addressing inequality,” Lagarde said.
“In this context, we believe it is essential that the global community and governments take action now, so that inequality does not continue to grow in coming years.”
The IEA and the International Finance Corporation (IFC) were the first international institutions to propose the creation of the International Economic Commission (IEC), an international body to draft policies on economic and financial integration.
After decades of efforts, the World Bank and the European Union finally made progress on a new global economic body.
But the creation and formation of a global financial sector, the so-called “super-region,” has been a long time coming.
According to the report, the super-region was supposed to be an international forum for the negotiation and implementation of international agreements on economic integration.
However, the creation failed in the face of the financial crisis, and it took the IEC years to get started.
While the IEP has received considerable support from both countries, the economic agenda is currently under significant scrutiny in both countries.
As the IEMF’s new report outlines, the focus of the upcoming summit is not on the creation or implementation of a common global economic platform, but rather, on “global governance” and “the ability to effectively manage the complex international financial systems.”
This will include discussions about the role of financial institutions and the international financial system in the development of global societies and the economy, the researchers said.
And while the global governance agenda has been discussed before, this time it will be different, with much more focus on the role that the international banking system will play.
It is unlikely that the IEEG will get an early start on the agenda, but the IEF’s chairman, former IMF president Dominique Strauss-Kahn, has said that the forum is in its early stages.