UNITED NATIONS - The United Nations is calling for enhanced international cooperation to deal with challenges threatening global economic insecurity, says a UN report. The appeal was contained in the World Economic and Social Survey 2008, published by the UN Department of Economic and Social Affairs (DESA). The annual report, whose theme this year is "Overcoming Economic Insecurity," examined several issues that impact on economic security, including macroeconomic and financial shocks, natural disasters, conflict and poverty. It noted that the current global economic insecurity, caused by factors such as global economy downshifts, prices spike and uncertain job prospects, is felt by developing countries, most sharply by the poorest ones. Even for developed countries, a sense of economic insecurity is also growing with rising inequality, indebtedness and the squeezing of social provisioning, it said. Left to their own devices, markets are not delivering the desired levels of economic security, UN economists argued. They advocate steps to narrow the pendulum swings of economic cycles, reduce dependence on debt and finance instruments for economic growth, tailor macroeconomic policies to development priorities and promote international cooperation. While govts are seeking measures to overcome shock and provide for security, int'l cooperation can be most effective in advancing the economic security agenda. The report called for improved access of developing countries to IMF resources and compensatory financing mechanisms designed to help them cope with external shocks. It also called for a more effective aid mechanism that would not only help meet the target for official development assistance (ODA) of 0.7pc of the gross national income of developed countries, but also support the recipient country's own development priorities. It also urged actions to curb the abuse of market and improve the distribution of the burden of economic shocks. AFP adds: The report called for policy changes that include increased public investment in agriculture. "The markets cannot be left to their own devices in respect of delivering appropriate and desired levels of economic security." It noted that the pressure on developing economies to open trade and finance markets before building productive farms and rural infrastructure was bad policy. "This lack of capacity has now become a destabilizing factor in a bedrock feature of personal and social security " the ability of a country to feed its citizens," it added. The report recommended, among other things, public investment in agriculture and a better balance of economic and social policies. While economic insecurity is felt most sharply in the poorest countries, developed countries have also been hit hard by "rising inequality, indebtedness and the squeezing of social provisioning," the report said. It urged narrow pendulum swings of economic cycles, reducing dependence on debt and finance instruments for economic growth, and tailoring macroeconomic policies to development priorities. The survey also pointed out that the practice of setting aside massive foreign reserves as a form of self-insurance was costing developing countries 100 billion dollars a year. It recommended placing foreign reserves in more productive foreign wealth funds, and especially using these funds to invest directly in development projects in other developing nations. The release of the report coincided with the annual, high-level meeting of the UN Economic and Social Council (ECOSOC) from June 30 to July 3. Some 500 participants are examining major developments in the world economy and their implications for achieving the poverty-reduction Millennium Development Goals (MDGs). In a message to the ECOSOC meeting, UN chief Ban Ki-moon, currently on an Asian tour, said the United Nations had reached a "critical juncture" in the implementation of its development agenda. "No social or economic order is secure if it fails to benefit the majority of those who live under it," he said. Ban however stressed the importance of globalization. "We also need to beware of the risks of a severe backlash against globalization, which could significantly curtail the opportunities and benefits of more closely integrated world," he said. Addressing the gathering, ECOSOC President Leo Merores said it was time "to come up with bold and innovative ideas and recommendations" to improve the situation in poor countries and to spur greater development cooperation. In a separate address to the Development Cooperation Forum, Ban also voiced concern that development assistance was provided inconsistently. Turning to how to cut economic losses due to natural disasters, the report recommended increasing investment in preparation and adaptation to reduce the risk of natural hazards turning into disasters. "Economic losses worldwide from disasters in the 1990s could have been cut by some 280 billion through investing 40 billion (dollars) in disaster reduction," it said.