The Organization for Economic Cooperation and Development is summoning its members -- the rich countries of the world -- to shape up or risk a global economic calamity. The OECD issued a new report today calling out countries on every continent, warning them to restore confidence in their economies.
According to OECD chief economist Pier Carlo Padoan, the global outlook has gotten worse in the last six months particularly in the eurozone, but also in emerging countries and the United States. But, says Padoan, it "could [get] much better if policy action is decisive."
The OECD is advising a balancing act of sorts for struggling economies: Spend more to boost growth now, but also trim longer term budgets to develop sustainably.
While the OECD does not have direct power to enforce policy, Padoan says, "We produce advice, and we hope that the countries use it."