Trade and Development Report 2011: Post-crisis Policy Challenges in the World Economy

The Trade and Development Report 2011 focuses on the post-crisis policy challenges in the world economy. It concludes that the recovery is slowing down and that the "two-speed recovery" is mainly the result of wide differences in domestic demand. In developing countries strong wage growth and sustained public support have prolonged the recovery in investment and domestic demand whereas in most developed economies private demand is subdued due to stagnating wages and little improvement in employment. The recent shift towards fiscal and monetary tightening represents a major risk for the global economy.