GFDD and FUNGLODE Stay at the Forefront of Academic Debate, Attending UNU Lecture by Renowned Economist Dr. François Bourguignon

September 14, 2009

In order to stay abreast of current thought concerning the global economic crisis, Global Foundation for Democracy and Development (GFDD) and Fundación Global Democracia y Desarrollo (FUNGLODE) attended the United Nations University’s Current Affairs Series, “The Crisis: Changing Prospects for Development,” featuring renowned economist Dr. François
Bourguignon on September 10 at UN Headquarters in New York City. The objective of the lecture was to make sense of the crisis and reflect upon the future direction of the global economy.

The current Director of the Paris School of Economics and former Chief Economist and Senior Vice President of the World Bank provided insights into the origins of the international economic recession, assessed the recovery strategies in place and examined shifts in philosophies and
practices related to development and the global economy. Dr. Bourguinon identified the principal causes of the proliferation of the economic crisis to be: exposure of developed countries to the US financial market and toxic assets, international accounting standards and the reliance of developing countries on the market economies of developed countries in terms of trade, financing and remittances.

Bourguinon warned that strategies being implemented in developed nations to
reverse economic contraction, such as bailing out banking systems, injecting liquidity and implementing fiscal policies characterized by lowering interest rates to zero or nearly zero percent were recovery-oriented and not growth-oriented. He asserted that due to the severity of the global economic recession, present economic recovery strategies would not be sufficient to encourage growth and pointed out the direct correlation between US consumer demand and international recovery, positing
that US consumption would need to increase from 3-4 percent of its GDP presently to 8 percent of its GDP in order for global growth to accelerate. He also warned that the world economy would need to be less reliant on US consumer demand to avoid future wide spread economic decline.

He projected slow economic recovery and the emergence of a new international economic paradigm characterized by deceleration of globalization and increased decoupling. Dr. Bourguinon also
predicted that growth rates for small and middle-sized economies would continue to be affected by slow growth in developed countries.

Dr. Bourguinon’s experience is extensive and includes serving as advisor to many developing nations, the Organisation for Economic Co-operation and Development, the United Nations and the European Commission. He also served as advisor to French Prime Minister Lionel Jospin.

The United Nations University, the
think tank of the United Nations, organizes frequent lectures with top-ranking authorities on issues of critical concern to the United Nations.

GFDD and FUNGLODE attend seminars and conferences about matters impacting the global community in order to remain at the forefront of academic debate and network with renowned experts, as part of their mission to bring world-class programs concerning social and economic development and democratization to the Dominican

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