UN General Assembly
1987

I now turn to the world economy, which continues to be in a state of deep disarray. The rates of growth of even developed countries are historically very low. All future projections indicate even lower rates of growth for those countries. The per capita incomes of many developing countries have dropped to levels lower than they were a decade ago. Commodity prices in real terms have collapsed to their lowest levels in 50 years. Despite the launching of the Uruguay Round of multilateral trade negotiations, the proliferation of protectionist measures continues unabated. Interest rates continue to be high in real terms. International liquidity has suffered a sharp contraction in relation both to the volume of trade and to the needs of developing countries. The pattern of trade balance is extremely skewed, with unsustainable surpluses in some countries and deficits in others, and exchange rates continue to show wide fluctuations. It is now widely recognized that the world economy faces a structural crisis which cannot be overcome within the framework of the system instituted after the Second World War. There is therefore an urgent need for evolving co-operative strategies informed by the explicit recognition of increasing global interdependence. We require concerted and comprehensive policy measures in the interrelated areas of money, finance, debt, trade, resource flows and development. The current crisis of the world economic system can be overcome only if we work towards a new international economic order.