World economic and social survey 1998 : trends and policies in the world economy

This edition of the World Economic and Social Survey is being pub lished at a time of uncertainty in the world economy. In only one year and through a sequence of events that few, if any, anticipated, there has been a complete reversal of some earlier characteristics. Some of the most rapidly expanding economies in the world have suddenly suffered an unprecedented setback. Formerly seen as economically sound, a few of these countries are now perceived to have fundamental economic flaws. Large inflows of for eign funds to these countries were rapidly replaced by substantial flows in the opposite direction. The hard-earned success in alleviating poverty has been abruptly negated.

Another disquieting feature of the crisis is the way in which it has spread from country to country and from continent to continent. The spread, persis tence and magnitude of the crisis have severely shaken the confidence of Gov ernments, of financiers, of business and of individuals. Countries and peoples far removed from the epicentre and having no responsibility for the turbu lence are being adversely affected. As always, it is the most vulnerable coun tries and peoples who suffer the most.

Previously, the opportunities and benefits of globalization received pride of place in international debate, The events of the past year have shifted attention to the sizeable risks and costs that are involved. Both the positive and negative consequences are the result of the global shift towards an increasingly unified world. Collectively, we need to address the threats to this goal that have been posed by the events of the past year.