A Report prepared jointly by the United Nation's Department of Economic and Social Affairs and the U.N. Conference on Trade and Development (UNCTAD) expects world economic growth to slow down to 3.25 per cent this year. 2004 was an especially good year for the less-developed countries. The cycle of economic growth peaked at an impressive 4 per cent, despite the uncertainty caused by the oil price shock and growing concerns over the U.S. Government's trade and budgetary deficits. As for the immediate outlook for the world economy, the report titled World Economic Situation and Prospects 2005 cautions that even its more moderate growth forecast for this year "may be hostage to how the U.S. dollar and global imbalances unwind." This is by no means an isolated assessment. As the second Bush administration prepares to unveil its economic policies, there is a feeling everywhere that happenings in the U.S. will have a more critical impact on the global economy than ever before...editorial.