Informally known as the Stiglitz Commission, it was tasked with indentifying the causes of the crisis, assessing the impacts on all countries and suggesting adequate responses as to avoid its recurrence and restore global economic stability.
The Commission sought to identify the broad principles underlying needed institutional reforms required to ensure sustained global economic progress and stability which would be of benefit to all countries, developed and less developed. It suggested a range of credible and feasible proposals for reforming the international monetary and financial system.
The Commission stated that the crisis was not just a once in a century accident, but the result of mistakes by the private sector and misguided and failed policies of the public. That the financial crisis that erupted in the United States in September 2008 was the latest and most impactful of several concurrent crises – of food, of water, of energy, and of sustainability – that are tightly interrelated, connected in important ways by an imperious economic perspective that has been implemented, often under duress, across the globe during the last 35 years.
The Commission stressed that the crisis demonstrates failure at many levels – of theory and philosophy, of institutions, policies and practices. The report concludes that our multiple crises are not the result of a failure or failures of the system. Rather, the system itself – its organisation and principles, and its distorted and flawed institutional mechanisms – is the cause of many these failures.