Global crisis not over: UNCTAD

CAIRO: Developed countries must reinforce regulations, develop debt resolution mechanisms, and meet commitments on development assistance in order to avoid a “prolonged stagnation,” the United Nations Conference on Trade and Development announced in a report launched Wednesday in Cairo.

“With a tepid recovery in developed countries and headwinds in many developing and transition economies, the global crisis is not over,” UNCTAD stated, adding “that the main constraint is insufficient global demand, combined with financial fragility and instability, and growing inequality.”

The organization recommended that developing countries be except from rules application to countries that host international banks, and that a regulatory agenda, that includes strict separation of retail and investment banking is necessary.

“Specialized public institutions and mechanisms are crucial for the provision of long-term development finance, in particular development banks,” UNCTAD added.

Funding from the African Development Bank to Egypt in 2015 has so far amounted to $450 million, and a plan is underway to develop a strategy for cooperation with the bank from 2015 until 2019, the Ministry of Cooperation announced in late September.

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