News / Economy

World Bank Urges Developing Countries to Brace for Long Term Volatility

World Bank Urges Developing Countries to Brace for Long Term Volatilityi
|| 0:00:00
X
Mil Arcega
June 13, 2012 11:57 PM
[[The World Bank is urging developing countries to brace for the possibility of more economic turmoil in Europe. In its Global Economic Prospects Report, the bank advises emerging market economies to strengthen fiscal positions and develop medium-term strategies to protect their economies. Mil Arcega has more.

World Bank Urges Developing Countries to Brace for Long Term Volatility

The World Bank is urging developing countries to brace for the possibility of more economic turmoil in Europe. In its Global Economic Prospects Report, the bank advises emerging market economies to strengthen fiscal positions and develop medium-term strategies to protect their economies.

Emerging market economies may have weathered the 2008 financial crisis better than more advanced countries, but the World Bank warns -- it could happen again.

Senior bank economist Andrew Burns says anything is possible right now in Europe.

"Although we don't see it as a baseline scenario, it certainly is possible that the situation in high-income Europe deteriorates significantly.  And if it did, that would have very serious impacts for developing countries," Burns said.

With borrowing costs still rising in Spain and Italy, and an upcoming Greek referendum that could forever alter the Eurozone -- Burns predicts a bumpy ride.

But even with the most recent bailout in Spain - economist Peter Morici says the problems facing Greece and Spain are very different.

"Spain's problem is one of a banking crisis. Greece's problem is one of a government crisis," Morici said.

Either way, Morici says the crisis has the potential to plunge the world into another recession, reducing global trade and exports dramatically.

The World Bank says developing nations need to focus on enhancing domestic productivity and boosting infrastructure development -- while reducing debt.

"What we suggest is that countries take the time now to try and replenish some of those cushions, some of those buffers they used in 2008 - 2009 so successfully to recover from that crisis.  Try and rebuild those now by bringing policy to a more neutral stance, reducing fiscal deficits so that they have the ammunition to respond if a crisis, a second crisis, announces itself," Burns said.

Despite an over-abundance of caution, Burns is optimistic about a full-fledged global recovery - one led by emerging economies in Central Asia, the Middle East and Sub-Saharan Africa.

You May Like

EU Court Fines Poland for Hosting CIA 'Black Sites'

Ruling is first time a court has acknowledged suspects were held and tortured at the sites, under US program launched following the 9/11 terrorist attacks More

Migrant Issues Close to Home Spur Groups to Take Action

Groups placing water, food in the desert, or aiding detainees after release, have one common goal: no more deaths of migrants crossing illegally into the US More

Video At AIDS Conference, Prevention Pill Stirs Excitement

Truveda shows promise, spurring debate over access and other approaches More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Treatment for Childhood Epilepsy Heats up Medical Marijuana Debatei
X
Shelley Schlender
July 24, 2014 6:43 PM
In the United States, marijuana is classed as an illegal drug by the federal government. But nearly half the states have legalized it, to some degree. Proponents say some strains of marijuana might have exceptional health benefits, for treating pain or inflammation in chronic conditions such as cancer, multiple sclerosis and epilepsy. Shelley Schlender reports on a strain of medical marijuana developed in Colorado that is reputed to reduce seizures in childhood epilepsy
Video

Video Treatment for Childhood Epilepsy Heats up Medical Marijuana Debate

In the United States, marijuana is classed as an illegal drug by the federal government. But nearly half the states have legalized it, to some degree. Proponents say some strains of marijuana might have exceptional health benefits, for treating pain or inflammation in chronic conditions such as cancer, multiple sclerosis and epilepsy. Shelley Schlender reports on a strain of medical marijuana developed in Colorado that is reputed to reduce seizures in childhood epilepsy
Video

Video Airbus Adds Metal 3D Printed Parts to New Jets

By the end of this year, European aircraft manufacturing consortium Airbus plans to deliver the first of its new, extra-wide-body passenger jets, the A350-XWB. Among other technological innovations, the new plane will also incorporate metal parts made in a 3-D printer. VOA's George Putic has more.
Video

Video Death Toll From Israel-Gaza Conflict Surpasses 700

Gaza officials say a shelling hit a compound housing a United Nations-run school in the Gaza Strip, killing more than a dozen people, during an Israeli offensive in the area. Heavy fighting between the Israeli military and Hamas militants continued on Thursday, pushing up the death toll. So far, more than 730 Palestinians and 35 Israelis have been killed in the conflict. VOA's Scott Bobb has the latest from Jerusalem.
Video

Video AIDS Conference Welcomes Exciting Developments in HIV Treatment, Prevention

Significant strides have been made in recent years toward the treatment and prevention of HIV, the virus that causes AIDS. This year, at the International AIDS Conference, the AIDS community welcomed progress on a new pill that may prevent transmission of the deadly virus. VOA’s Anita Powell reports from Melbourne, Australia.
Video

Video Israel Targets Gaza Supply Tunnels

The Israeli military has launched a ground operation in Gaza to destroy the myriad tunnels that may have been used to smuggle weapons to Hamas. VOA's Zlatica Hoke reports that could mean more hardship for the people of Gaza, who obtain some of their essential supplies through these underground passages
Video

Video Researchers Target Low-Cost Avatar Technology

Scientists at the University of Southern California Institute for Creative Technologies say 3-dimensional representations could revolutionize social media. Elizabeth Lee has more from Los Angeles.
Video

Video IAEA: Iran Turns its Enriched Uranium Into Less Harmful Form

Iran has converted its stockpiles of enriched uranium into a less dangerous form that is more difficult to use for nuclear weapons, according to the United Nations’ Atomic Energy Agency. The move complies with an interim deal reached with Western powers on Iran's nuclear program last year, in exchange for easing of sanctions. Henry Ridgwell reports for VOA from London.
Video

Video In Cambodia, HIV Diagnosis Brings Deadly Shame

Although HIV/AIDS is now a treatable condition, a positive diagnosis is still a life altering experience. In Cambodia, people living with HIV are often disowned by friends, family and the community. This humiliation can be unbearable. We bring you one Cambodian woman’s struggle to overcome a life tragedy and her own HIV positive diagnosis.

AppleAndroid

World Currencies

EUR
USD
0.7305
JPY
USD
101.53
GBP
USD
0.5830
CAD
USD
1.0656
INR
USD
60.075

Rates may not be current.