Inequality also grew in nine of the 16 richest economies in the world

Inequality also grew in nine of the 16 richest economies in the world.The report suggests that not only has growth of the world economy slowed, but the growth that takes place has also become more unequalising. During the Eighties, the rich got much richer but the income share of the middle class fell the world over. This phenomenon appears to be closely related to a sudden shift in policies giving a much greater role to market forces.Unctad does not go so far as to call for a reversal of these forces. But it advises minimising the danger of a political backlash by making sure future trade liberalisation favours the poorest countries.. It is against this subdued background that the new report predicts growing political tensions.The 1920s and 1930s provide a stark and disturbing reminder of how quickly faith in markets and economic openness can be overwhelmed by political events, it says. In a sharp contrast to the cautious optimism expressed by other international agencies, such as the World Bank in its annual economic outlook published last week, Unctad says the world economy will continue to grow too slowly to make a dent in poverty and unemployment. Trading in existing assets is often more lucrative than creating wealth through new investment, the report says.

The report, from one of the branches of the UN traditionally least sympathetic to free market policies, recommends slowing the pace at which developing countries are opening up their economies. Rather it favours carefully managed and phased integration into the world economy. Unctad also criticises the deregulation of financial markets that has allowed capital to flow freely around the globe. Although carefully distancing itself from its earlier history as a vocal opponent of multinationals which invest in developing countries, it claims in the new report that the freedom of the financial markets has undermined long-term investment, echoing a common left-wing sentiment.Finance has gained an upper hand over industry, and rentiers over investors. And if it doesn't eventually do so, the people will speak, with possibly calamitous consequences for everyone..

The increasing integration of the world economy through trade and investment flows is being accompanied by greater inequality within and between nations, according to the annual report of the United Nations Conference on Trade and Development (Unctad). This could provoke a political backlash in the developed or developing countries which would roll back the benefits of economic integration. All the same, the UN deserves some credit for highlighting the darker side of global integration. For the great bulk of the world, the process has yet to yield significant benefits. Instead the UN urges a more imaginative, sensitive and phased approach to integration. This unfortunately is where the UN's table thumping comes over all wishy-washy.

Other than urging policy makers the world over to try harder, the report is unable to offer much in the way of solutions. Morgan is also understood to be on the point of beefing up its operation at Swansea to replicate in Europe its commanding US position in commutators. South-east Asia remains a slight worry, despite the group's confidence, but at least Morgan seems to be softening up the City for a seamless change when Bruce Farmer, managing director, retires. An announcement is thought to be imminent.Full-year profits of pounds 112m would put the shares, up 3p at 479.5p, on a forward p/e of 15 Reasonable value.. The Independent Television Commission yesterday dealt a blow to advertisers but pleased the ITV companies by blocking a request from the Incorporated Society of British Advertisers (Isba) to increase the number of minutes per hour dedicated to advertising on television. Isba, which has campaigned tirelessly for increased advertising time, had asked the ITC to consider bringing the time given over to advertising in line with European countries, where terrestrial television networks are allowed to carry advertising for nine minutes every hour. ITV currently carries an average of seven minutes of advertising each hour.