News / Economy

IMF Urges Action for Lasting Economic Recovery

International Monetary Fund (IMF) Managing Director Christine Lagarde (R) and IMF First Deputy Managing Director David Lipton hold a news conference at the annual meetings of the International Monetary Fund and the World Bank Group in Tokyo October 11, 20
International Monetary Fund (IMF) Managing Director Christine Lagarde (R) and IMF First Deputy Managing Director David Lipton hold a news conference at the annual meetings of the International Monetary Fund and the World Bank Group in Tokyo October 11, 20
The head of the International Monetary Fund is calling for “courageous and cooperative action” among members to achieve a sustained economic recovery. However, political tensions in Asia and continuing concerns about Europe are drawing the most attention.

IMF Managing Director Christine Lagarde acknowledged “good news and bad news” about the Euro zone, a primary concern for the finance ministers and central bankers here.

The good news, she said, is a new organization - the European Stability Mechanism - that is now functioning. It has nearly $650 billion to provide to troubled Euro zone members. The bad news, Lagarde explained, is that legislative barriers in troubled states hamper them from taking effective action.

Lagarde also dispensed some advice for the world's second-largest economy, China.

“Be a partner in the global economy, full-fledged," she urged. "Second, focus on the domestic market which is clearly an engine for growth that China should activate and is planning to activate. And ,when I say domestic market I would divide between investment and consumption. And, clearly the focus going forward should be on consumption because investment has already been well taken care of in the last couple of years.”

U.S. Treasury Secretary Timothy Geithner explained China's economy has grown more complex over the years and now the shock from Europe has hurt its export-driven growth.

“They just can't sit there and turn these dials, just turn them slightly the way they used to and have that result in significant expansion activity," he noted, "without the risks that they're now a little more worried about, which is not to recreate the distortions, the long costs, of just trying to push a lot of money really quickly through a system that doesn't allocate resources very well.”

But China's finance minister and top bankers are not present to hear this. Beijing has sent lower-ranking officials to show their displeasure with host Japan. The two countries are enmeshed in a diplomatic feud about uninhabited islands controlled by Tokyo but claimed by the Chinese.

Lagarde, a former finance minister of France, chided the Chinese for skipping out, saying they are losing out by not attending important meetings.

For officials from developing countries in attendance, there are worries rising food prices will mean more of their people going hungry.

World Bank President Jim Yong Kim said he is very concerned about this.

“From our perspective the response to the increases in food prices has to be multi-faceted," Kim said. "What we're doing immediately is making resources available to countries to provide an emergency capability of helping to purchase food.”

The World Bank president urged the developed world's ministers and bankers to not only focus on fighting recession in the advanced economies, but also to take steps this week that can help developing nations escape poverty.

Steve Herman

A veteran journalist, Steven L Herman is the Voice of America Asia correspondent.

You May Like

Photogallery Pistorius Sentenced, Taken to Prison

Pistorius, convicted of culpable homicide in shooting death of girlfriend Reeva Steenkamp, will likely serve about 10 months of five-year sentence, before completing it under house arrest More

UN to Aid Central Africa in Polio Vaccinations

Synchronized vaccinations will be conducted after Cameroon reports a fifth case of the wild polio virus in its territory More

WHO: Ebola Vaccine May Be in Use by Jan.

WHO assistant director Dr. Marie Paule Kieny says clinical trials of Ebola vaccines are underway or planned in Europe, US and Africa More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
After Decades of Pressure, Luxembourg Drops Bank Secrecy Rulesi
X
October 21, 2014 12:20 AM
European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video After Decades of Pressure, Luxembourg Drops Bank Secrecy Rules

European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video Kobani Refugees Welcome, Turkey Criticizes, US Airdrop

Residents of Kobani in northern Syria have welcomed the airdrop of weapons, ammunition and medicine to Kurdish militia who are resisting the seizure of their city by Islamic State militants. The Turkish government, however, has criticized the operation. VOA’s Scott Bobb reports from southeastern Turkey, across the border from Kobani.
Video

Video China Political Meeting Seeks to Improve Rule of Law

China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video US ‘Death Cafes’ Put Focus on the Finale

In contemporary America, death usually is a topic to be avoided. But the growing “death café” movement encourages people to discuss their fears and desires about their final moments. VOA’s Jerome Socolovsky reports.
Video

Video Ebola Orphanage Opens in Sierra Leone

Sierra Leone's first Ebola orphanage has opened in the Kailahun district. Hundreds of children orphaned since the beginning of the Ebola outbreak face stigma and rejection with nobody to care for them. Adam Bailes reports for VOA about a new interim care center that's aimed at helping the growing number of children affected by Ebola.
Video

Video Young Nairobi Tech Innovator on 'Track' in Security Business

A 24-year-old technology innovator in Nairobi has invented a tracking device that monitors and secures cars. He has also come up with what he claims is the most robust audio-visual surveillance system yet. As Lenny Ruvaga reports from the Kenyan capital, his innovations are offering alternative security solutions.
Video

Video Latinas Converting to Islam for Identity, Structure

Latinos are one of the fastest growing groups in the Muslim religion. According to the Pew Research Center, about 6 percent of American Muslims are Latino. And a little more than half of new converts are female. VOA’s Carolyn Presutti travelled to Miami, Florida -- where two out of every three residents is Hispanic -- to learn more.
Video

Video Exclusive: American Joins Kurds' Anti-IS Fight

The United States and other Western nations have expressed alarm about their citizens joining Islamic State forces in Syria and Iraq. In a rare counterpoint to the phenomenon, an American has taken up arms with the militants' Syrian Kurdish opponents. Elizabeth Arrott has more in this exclusive profile by VOA Kurdish reporter Zana Omer in Ras al Ayn, Syria.
Video

Video South Korea Confronts Violence Within Military Ranks

Every able-bodied South Korean male between 18 and 35 must serve for 21 to 36 months in the country’s armed forces, depending upon the specific branch. For many, service is a rite of passage to manhood. But there are growing concerns that bullying and violence come along with the tradition. Reporter Jason Strother has more from Seoul.
Video

Video North Carolina Emerges as Key Election Battleground

U.S. congressional midterm elections will be held on November 4th and most political analysts give Republicans an excellent chance to win a majority in the U.S. Senate, which Democrats now control. So what are the issues driving voters in this congressional election year? VOA National Correspondent Jim Malone traveled to North Carolina, one of the most politically competitive states in the country, to find out.
Video

Video Comanche People Maintain Pride in Their Heritage

The Comanche (Indian nation) once were called the “Lords of the Plains,” with an empire that included half the land area of current day Texas, large parts of Oklahoma, New Mexico, Kansas and Colorado.The fierceness and battle prowess of these warriors on horseback delayed the settlement of most of West Texas for four decades. VOA’s Greg Flakus reports from Lawton, Oklahoma, that while their warrior days are over, the 15,000 members of the Comanche Nation remain a proud people.
Video

Video Turkey Campus Attacks Raise Islamic Radicalization Fears

Concerns are growing in Turkey of Islamic radicalization at some universities, after clashes between supporters of the jihadist group Islamic State (IS) or ISIS, and those opposed to the extremists. Pro-jihadist literature is on sale openly on the streets of Istanbul. Critics accuse the government of turning a blind eye to radicalism at home, while Kurds accuse the president of supporting IS - a charge strongly denied. Henry Ridgwell reports from London.

All About America

AppleAndroid

World Currencies

EUR
USD
0.7878
JPY
USD
106.98
GBP
USD
0.6230
CAD
USD
1.1220
INR
USD
61.226

Rates may not be current.