Global Economy: Changing Growth Paradigm

DAY ONE, 09:40-11:10

 

Global economic growth in recent years was largely driven by a rapid expansion of private debt, which helped to accelerate growth rates but also increased leverage. Debt reached critical levels in many countries, helping to artificially inflate demand. It was initially understood that the global financial and economic crisis marked the end of such development, as massive deleveraging deflated demand. However, government stimulus plans largely meant that private debt was replaced with public debt as the state became a more important economic factor in many advanced economies.

Does this mean that the global economic paradigm has changed fundamentally, and if so, for how long? Is the world going to face greater regulation and state involvement in the years or decades to come, or will the free market reinvent itself shortly? What sort of supranational regulation and institutions will the world will to secure economic, political and social stability? Are globalization, free trade, and the free flow of capital and labor at risk, and are barriers set to rise and contribute to the formation of a number of regional blocs? How is the global economic arena going to change in the next decade, and how will this change impact global security issues? What are the implications of the emerging new economic order for the market? How should rising debt levels be dealt with – will we see more debt-to-equity swaps worldwide?