Dust beef stew meat with 2 tablespoons cornstarch and season with salt and black pepper.
In a large pot or Dutch oven, heat olive oil over medium-high heat. Add the seasoned beef and sear for about 5 minutes, until all sides are browned, stirring frequently.
Stir in minced garlic and tomato paste. Cook for 1-2 minutes until fragrant.
Pour in beef broth and Worcestershire sauce to deglaze the pan, scraping up any browned bits from the bottom. Add potatoes, pearl onions, carrots, and celery. Sprinkle in granulated sugar, basil, oregano, parsley, paprika, and ground allspice. Stir to combine.
Bring the stew to a boil over high heat, then reduce the heat to low. Cover and simmer for 90 to 120 minutes, stirring occasionally, until the beef is tender.
In a small bowl, mix the remaining cornstarch with cold water. Stir until completely dissolved. Slowly pour the cornstarch mixture into the stew, stirring constantly. Cook on low heat for a few more minutes, until the stew thickens.
Taste and adjust the seasoning with more salt and pepper if necessary. Serve hot.