Fiscal Stimulus Plans: The Need for a Global New Deal

International Development Economics Associates, IDEAs, March 2009

6 Pages Posted: 26 Mar 2009 Last revised: 6 Apr 2009

See all articles by Isabel Ortiz

Isabel Ortiz

United Nations - International Labour Organization (ILO); Initiative for Policy Dialogue

Date Written: March 18, 2009

Abstract

The article reviews announced fiscal stimulus packages in 43 countries. In March 2009, the total announced for stimulus plans is US$ 2.18 trillion, or 3.5% of world's GDP, mostly in higher income economies. The majority of these recovery packages contain measures to stimulate firms, consumers, and public investment in infrastructure. The article argues that a country approach is inadequate: a global crisis requires global responses. Developing countries will be hit hard, there is a need for increased ODA, so they are able to engage in countercyclical stimulation. Reviewing the content of stimulus packages, it is argued that stimulating global demand (and reducing poverty) will require further redistributive measures. Responses have been slow. There is an urgent need for a coordinated expansionary global stimulus package.

Keywords: crisis, fiscal stimulus plans, recovery packages, poverty reduction

JEL Classification: F02, F35, H40, H53, I30, O10, O20

Suggested Citation

Ortiz, Isabel, Fiscal Stimulus Plans: The Need for a Global New Deal (March 18, 2009). International Development Economics Associates, IDEAs, March 2009 . Available at SSRN: https://ssrn.com/abstract=1368404

Isabel Ortiz (Contact Author)

United Nations - International Labour Organization (ILO) ( email )

ILO HQ, Route des Morillons 4
Geneva, 1211
Switzerland
+41227996226 (Phone)

HOME PAGE: http://www.ilo.org/

Initiative for Policy Dialogue ( email )

Columbia University
New York, NY
United States

HOME PAGE: http://policydialogue.org/programs/taskforces/global_social_justice/

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