The Global Financial and Economic Crisis UNDP

1
The Global Financial and Economic CrisisUNDPs
RESPONSE

• Regional Conference on the Impact of the Global
  Economic and Financial Crisis to the Vulnerable
  Sectors in the Region Civil Society Voices and
  ASEAN
• Jakarta, 28-29 July 2009

2
Human Development Impact of Crisis in Asia

• Progress towards MDGs under threat
• While poverty incidence decreased sharply many
  remain vulnerable to economic shocks
• Recent food and fuel crisis forced 200 million
  into poverty
• An estimated 60 million in 2009 and up to 100
  million in 2010 more pushed into poverty
• Children, women, working poor, migrants and
  people already at a disadvantage among most
  vulnerable

3
Human Development Impact of Crisis in Asia

• Unemployed in Asia projected to increase from 80
  million in 2007 to 93 million in 2009
• Slow-down in job creation (a 4 drop in growth
  will reduce employment growth by 2- 4 per year)
• Female and migrant workers often most vulnerable
  to lose jobs

4
Responding to Crisis

• Asymmetry between industrialized and developing
  countries in capacity to respond
• Most countries focus on fiscal stimulus packages
• Support for vulnerable remains fragmented and
  under-resourced

5
Global Responses

• Conference on World Financial and Economic Crisis
  
• and Its Impact on Development June 2009
• Tackling crisis can be consistent with tackling
  poverty and climate change
• Highlighted systemic fragilities and imbalances
• Called for renewed multilateralism
• Called for intensification of efforts to reform
  and strengthen international financial system and
  architecture

6
UN Summit Proposals

• Adopting a comprehensive approach to address
• climate change, environmental issues
• food/fuel price crisis
• MDGs
• Keeping a long-term perspective
• Looking beyond national benefits
• Improving monitoring of vulnerabilities

7
UN Summit Some Proposals for Action

• Suggests counter-cyclical measures of stimulus
• Calls on countries to avoid protectionist actions
• Proposes better regulation over financial markets
• Calls for creation of new credit facility and
  mechanisms of innovative financing
• Calls for better coherence between policies
  governing trade and finance
• Proposes institutional reform of Bretton Woods
  institutions

8
UNDP Response Country Level Support

• UNDPs support includes
• Policy dialogue and consultations
• Assessment and advocacy
• Monitoring human development impact
• Support through existing and new programs and
  projects
• Design of social protection programs and safety
  nets
• Job creation schemes (e.g. labor intensive
  infrastructure)
• Increasing income and productivity of farmers

9
Asia Pacific Regional and Country Level
Responses

• Regional
• Shift from more localized response to higher
  policy level
• Philippines
• Local government unit intervention
• High level policy advice
• Laos
• UNDP Round Table Implementation Meeting
• Follow up workshop in December with key
  ministries discussion of implications of crisis
  on next National Socio-Economic Development plan
  with concrete recommendations

10
Asia Pacific Country Level Responses, Continued .
. .

• China
• Discussion with government on South South
  financial flows in trade, aid and investment
• China-Africa Business Council involvement
• Cambodia
• Insights for Action initiative (UNDP Cambodia) is
  exploring ways of facilitating information
  sharing and providing advisory assistance to the
  government

11
UN Response - Indonesia

• Harmonized UN Approach UNDP, WFP, UNICEF and ILO
• Technical Workshop March/April 2009 laid
  groundwork for Crisis Monitoring and Response
  System
• Assist Government in Setting up Crisis Monitoring
  and Response System
• Institutional framework
• In-depth analysis of impact
• Assessing response mechanisms
• Data management system

12

• Thank
• You