Highlights

International economic issues touch the lives of people everywhere. Whether grappling with the challenges posed by new information technologies, seeking to draw policy lessons from financial crises in emerging markets, or assessing the possible impact of China´s entry into the World Trade Organization, we look to economics as a guide in our rapidly changing world. The poorest nations especially require a clear economic road map if they are to make progress against the persistent problems of hunger, ill health and social insecurity.

Over the past 20 years, UNCTAD´s Trade and Development Report has established itself as an authoritative voice on key international economic issues. This year´s Report offers an assessment of recent trends and prospects in the world economy, with particular focus on the impact that developments and policies in the industrial economies are likely to have on prospects in the developing world. With policy makers everywhere concerned about the effect of the economic slowdown in the United States, the Report´s call for greater coordination and cooperation on economic issues deserves careful consideration.

In the past decade, there has been growing concern about the ability of multilateral rules and regulations to meet the challenges posed by global financial markets. This year´s Report examines in depth the ongoing discussions about reforming the multilateral financial system. It looks at key areas such as codes and standards, the contributions of private institutions in managing financial crises, and the workings of the exchange rate system. On each subject, it offers challenging recommendations on how to move the reform process forward. Many of these issues are expected to be discussed at next year´s high-level event on financing for development. I hope this Report will make a useful contribution to those discussions.