6 October 2015: The UN Conference on Trade and Development (UNCTAD) has released its 2015 Trade and Development Report (TDR), titled ‘Making the international financial architecture work for development.’ This year’s report identifies key issues for establishing a more stable and inclusive international monetary and financial system to support development challenges, considers existing shortcomings, analyzes emerging vulnerabilities, and examines proposals and initiatives for reform.

According to the TDR, the main constraint on the global economy is insufficient global demand, combined with financial fragility and instability, and growing inequality.

The 2015 report finds that: developed countries need to combine monetary expansion with fiscal expansion and wage growth; developing countries could build on regional and inter-regional initiatives, set swap arrangements among Central Banks and reduce the need for reserve accumulation; developing countries should not be required to apply prudential rules conceived for countries hosting internationally active banks; and the international community needs to meet its official development assistance (ODA) commitments and to tune ODA better to strengthening the productive economy.

It also recommends strict separation of retail and investment banking, strong regulation of shadow banking and public oversight of credit rating agencies, and a statutory approach to sovereign debt restructuring, based on a multilateral treaty defining rules to restore growth and debt sustainability. [Publication: Trade and Development Report (TDR) 2015: Making the International Financial Architecture Work for Development] [UNCTAD Press Release] [Publication and Press Release Webpage] [UN Press Release]