Ugandan and Oxfam International Executive Director Winnie Byanyima along Nobel laureates Joseph Stiglitz and Michael Spence are leading the Commission on Global Economic Transformation to find solutions to dysfunctioning market economy. The two economists, along with George Akerlof, won the Nobel in economic sciences in 2001 for their work in explaining how buyers and sellers use information in business transactions.
The commission aims to tackle global challenges from stagnating growth and inequality to migration and climate change
‘ ‘Delighted to be on this commission to push for bold action 2 reshape the global economy, reduce inequality and end poverty’’ Winnie Byanyima said.
Persistently low growth since the 2008 financial crisis has reinforced the problem, with many workers seeing tepid wage growth, and a growing sense their careers are threatened by immigration or automation. Billionaire Ray Dalio wrote in a report on Monday that the Federal Reserve should more closely monitor the struggles of the bottom 60 percent of the economy when setting policy since “average statistics” are camouflaging what’s really occurring.
The group, unveiled Sunday by the Institute for New Economic Thinking at its conference in Edinburgh, will produce a final report in 2019 with findings and recommendations.
The new initiative seeks to tackle global economic challenges from stagnating growth and inequality to migration and climate change. It intends to meet with elected officials and policy makers to share its recommendations.
The standard market economy “has not been working well for most citizens” and “the failure of it to work has clearly had political consequences .The recognition that that model is not working is itself a reason for the formation of the commission.” Stiglitz told Bloomberg.
A sluggish recovery from the global financial crisis and concerns about globalization have helped fuel a rise of populist movements across the U.S. and Europe. Stiglitz said a “third way” is needed because globalization has failed many citizens and “nativist” policies of U.S. President Donald Trump are “going to be equally bad for the same group of people.”
“We need new rules and coordinated governance to address destructive tendencies rapidly emerging in the global economy, and to protect human communities subject to them,” Stiglitz said in a statement.
“Young people are thirsty — they’ve been taught in the straitjacket of orthodox economics that is really the economics of the 1 percent, the economics of the wealthy, cheating the poor,” she said.
“They don’t like it. They want something that works and that gives them a future.” Ms Byanyima revealed in interview with Bloomberg on Monday.
The commission also includes Adair Turner, INET chairman and former U.K. Financial Services Authority head and Mohamed El-Erian, Allianz SE’s chief economic adviser and a Bloomberg View columnist.