Unfortunately, the lion’s share of this capital flowed into private or public consumption or into an oversized housing sector. On the back of heavily exaggerated growth expectations, a decrease in competitiveness owing to generous wage settlements and insufficient financial regulation, sizable imbalances accumulated which then contributed to the crisis. Hence, to resolve the crisis it is the countries themselves that need to adjust.
To begin, we must decide what the actual improvements are that we want to see, and how we will monitor our progress in achieving them. These decisions will define the level of ambition, create accountability and shape how the roadmap is operationalized at the global, regional, and national levels.