News / Economy

IMF Warns of Growing Economic Discord

International Monetary Fund (IMF) Managing Director Dominique Strauss-Kahn arrives for the opening news conference of the annual IMF and World Bank meetings, Thursday, Oct. 7, 2010, in Washington
International Monetary Fund (IMF) Managing Director Dominique Strauss-Kahn arrives for the opening news conference of the annual IMF and World Bank meetings, Thursday, Oct. 7, 2010, in Washington
Diaa Bekheet

The head of the International Monetary Fund warns global cooperation inspired by the financial crisis is beginning to fray.

IMF Managing Director Dominique Strauss-Kahn told reporters in Washington Thursday too many countries are pursuing policies that will boost their immediate economic fortunes but harm the global economy in the long-term.  He said there can be "no domestic solution to a global crisis."

Some countries and economists have raised concerns about what they describe as a "global currency war" - accusing some nations of lowering the value of their currencies to give their products a price advantage on the world market.  Strauss-Kahn downplayed the use of that term, but agreed some countries have been using their currencies like weapons.

The IMF chief also sent a message to emerging economies that have been clamoring for a greater voice in IMF decisions.  Strauss-Kahn said countries that want to have a greater say also need to accept more responsibility for maintaining a healthy global economy.

Countries including China, Japan, South Korea, Taiwan, Thailand and Colombia have been criticized for lowering the value of their currencies.  And on Wednesday, U.S. Treasury Secretary Timothy Geithner said global growth will slow and that "all of us will be worse off" unless emerging economies change their tactics.

Despite the concerns, the IMF chief expressed hope that the organization could help make progress during its three-day annual meeting, which starts Friday in Washington.  But like the U.S. treasury secretary, he said any solutions will take time to implement.

Strauss-Kahn also reiterated that the recovery from the global economic crisis remains fragile.

He said the crisis has ended in Asia and South America, where individual economies have seen strong growth, and that sub-Saharan Africa is also growing.  But warned there is still concern about Europe and the United States.  

He said the global crisis will not be over until unemployment rates decrease significantly.

On Wednesday, the IMF forecast the global economy will grow 4.8 percent this year and slow down a bit next year.

IMF experts say emerging nations will grow more than 7 percent this year.  Wealthy advanced nations are lagging behind, and will expand just 2.7 percent.

The IMF's chief economist, Olivier Blanchard, also told journalists in Washington that the world economy is not likely to lapse back into recession.

But he said the financial system still needs reforms, and he urged wealthy nations to cut government deficits, increase private demand, and boost exports.

Some information for this report was provided by Reuters.

You May Like

Hong Kong Democracy Calls Spread to Macau

Macau and Hong Kong are China’s two 'special administrative regions' which gives them a measure of autonomy More

After Nearly 2 Years, Pistorius Remains Elusive

Reporter Anita Powell reflects on her experience covering the Olympic athlete's murder trial More

Kenyan Coastal Town Struggles With Deadly June Attacks

Three months after al-Shabab militants allegedly attacked their town, some Mpeketoni residents are still bitter, question who was really behind the assaults More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Obama to Ramp Up Anti-Ebola Efforts in Africai
X
Luis Ramirez
September 15, 2014 11:01 PM
President Barack Obama on Tuesday will unveil his plan to ramp up efforts against the spread of the Ebola virus in Africa. VOA White House Correspondent Luis Ramirez reports.
Video

Video Obama to Ramp Up Anti-Ebola Efforts in Africa

President Barack Obama on Tuesday will unveil his plan to ramp up efforts against the spread of the Ebola virus in Africa. VOA White House Correspondent Luis Ramirez reports.
Video

Video West Trades Accusations Over Ransoms

As world leaders try to forge a common response to the threat posed by Islamic State militants in Iraq and Syria, there is simmering tension over differing policies on paying ransoms. In the past month, the jihadist group has beheaded two Americans and one Briton. Both countries refuse to pay ransom money. As Henry Ridgwell reports for VOA from London, there is uncertainty in the approach of some other European nations.
Video

Video Scotland Independence Bid Stokes Global Interest

The people of Scotland are preparing to vote on whether to become independent and break away from the rest of Britain, in a referendum being watched carefully in many other countries. Some see it as a risky experiment; while others hope a successful vote for independence might energize their own separatist demands. Foreign immigrants to Scotland have a front row seat for the vote. VOA’s Henry Ridgwell spoke to some of them in Edinburgh.
Video

Video Washington DC Mural Artists Help Beautify City

Like many cities, Washington has a graffiti problem. Buildings and homes, especially in low-income neighborhoods, are often targets of illegal artwork. But as we hear from VOA’s Julie Taboh, officials in the nation's capital have come up with an innovative program that uses the talents of local artists to beautify the city.
Video

Video US Muslim Leaders Condemn Islamic State

Leaders of America's Muslim community are condemning the violent extremism of the Islamic State group in Iraq and Syria. The U.S. Muslim leaders say militants are exploiting their faith in a failed effort to justify violent extremism. VOA correspondent Meredith Buel reports.
Video

Video Americans' Reaction Mixed on Obama Strategy for Islamic State Militants

President Barack Obama’s televised speech on how the United States plans to “degrade and destroy” the group known as the Islamic State reached a prime-time audience of millions. And it came as Americans appear more willing to embrace a bolder, tougher approach to foreign policy. VOA producer Katherine Gypson and reporter Jeff Seldin have this report from Washington.
Video

Video Authorities Allege LA Fashion Industry-Cartel Ties

U.S. officials say they have broken up crime rings that funneled tens of millions of dollars from Mexican drug cartels through fashion businesses in Los Angeles. Mike O'Sullivan reports that authorities announced nine arrests, as 1,000 law enforcement agents fanned out through the city on Wednesday.
Video

Video Bedouin Woman Runs Successful Business in Palestinian City

A Bedouin woman is breaking social taboos by running a successful vacation resort in the Palestinian town of Jericho. Bedouins are a sub-group of Arabs known for their semi-nomadic lifestyle. Zlatica Hoke says the resort in the West Bank's Jordan Valley is a model of success for women in the region.


Carnage and mayhem are part of daily life in northern Nigeria, the result of a terror campaign by the Islamist group Boko Haram. Fears are growing that Nigeria’s government may not know how to counter it, and may be making things worse. More

AppleAndroid

World Currencies

EUR
USD
0.7735
JPY
USD
107.03
GBP
USD
0.6155
CAD
USD
1.1011
INR
USD
60.954

Rates may not be current.