38. The interconnectedness of the global economy means that no country is immune to events in the larger global economy. At the same time, decision-making processes for managing the international economy are changing rapidly and now include new actors and dynamics (such as the creation of the Group of Twenty (G-20) and the Financial Stability Board, and IMF quota reform). Intense debate is re-emerging in many quarters about the balance between markets and regulation, and between citizens and the State.

39.    The adverse effects of global economic crises did not end after 2008, but have instead become more multifaceted. Each of these crises has the potential to derail sustainable development through severe economic shock. They now encompass:

(a) A sovereign debt crisis, rooted primarily in the Organization for Economic Cooperation and Development (OECD) economies but with far-reaching implications for every country because of foreign exchange holdings;
(b) A financial crisis, seen in massively volatile asset prices and large unresolved accumulations of bad debts;
(c)    A growth crisis, seen in anaemic growth in many countries and mounting concern about the possibility of what the International Monetary Fund (IMF) has described as a threatening downward spiral for the global economy;
(d) A jobs crisis, with high unemployment across the world, especially among the young, and approximately 1.5 billion people in “vulnerable employment” with little job security and few, if any, employment rights;
(e)    A governance crisis, with national Governments often struggling to agree on collective action to manage economic risks, or on ways to improve regulation of the banking sector.