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

Video Five Patients Given Experimental Ebola Drug Said To Be Improving

Experimental drugs have been tried on six people: three Westerners and now, three African pyhysicians More

Video In Ukraine, Fear and Distrust Remain Where Fighting has Stopped

As Ukrainian military reclaims control of eastern cities residents rebuild their lives, but many say everyone is being treated with suspicion More

Video In Rural Kenya, Pressure Builds Against Female Circumcision

Girls learn to object; FGM practitioners face penalties from jail sentences to stiff fines 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.
Five Patients Given Experimental Ebola Drug Said to Be Improvingi
X
Carol Pearson
August 19, 2014 11:43 PM
The World Health Organization has approved the use of experimental treatments for Ebola patients in West Africa. The Ebola outbreak there is unprecedented, the disease deadly. The number of people who have died from Ebola has surpassed 1,200. VOA's Carol Pearson reports on the ethical considerations of allowing experimental drugs to be used.
Video

Video Five Patients Given Experimental Ebola Drug Said to Be Improving

The World Health Organization has approved the use of experimental treatments for Ebola patients in West Africa. The Ebola outbreak there is unprecedented, the disease deadly. The number of people who have died from Ebola has surpassed 1,200. VOA's Carol Pearson reports on the ethical considerations of allowing experimental drugs to be used.
Video

Video In Ukraine, Fear and Distrust Remain Where Fighting has Stopped

As the Ukrainian military reclaims control of eastern cities from pro-Russian separatists, residents are getting a chance to rebuild their lives. VOA's Gabe Joselow reports from the town of Kramatorsk in Donetsk province, where a sense of fear is still in the air, and distrust of the government in Kyiv still runs deep.
Video

Video China Targets Overseas Assets of Corrupt Officials

As China presses forward with its anti-graft effort, authorities are targeting corrupt officials who have sent family members and assets overseas. The efforts have stirred up a debate at home on exactly how many officials take that route and how likely it is they will be caught. Rebecca Valli has this report.
Video

Video Leading The Fight Against Islamic State, Kurds Question Iraqi Future

Western countries including the United States have begun arming the Kurdish Peshmerga forces in northern Iraq to aid their battle against extremist Sunni militants from the Islamic State. But there are concerns that a heavily-armed Kurdistan Regional Government, or KRG, might seek to declare independence and cause the break-up of the Iraqi state. As Henry Ridgwell reports from London, the KRG says it will only seek greater autonomy from Baghdad.
Video

Video In Rural Kenya, Pressure Builds Against Female Circumcision

In some Kenyan communities, female genital mutilation remains a rite of passage. But activists are pushing back, with education for girls and with threats of punishment those who perform the circumcision. Mohammed Yusuf looks at the practice in the rural eastern community of Tharaka-Nithi.
Video

Video For Obama, Racial Violence is Personal Issue

The racial violence in the St. Louis suburb of Ferguson is presenting U.S. President Barack Obama with an issue to which he has a deep personal connection. To many Americans, Obama's election as America's first black president marked a turning point in race relations in the United States, and Obama has made ending the violence a policy priority. On Monday he issued a new call for calm and understanding. Luis Ramirez reports from the White House.
Video

Video Clinton-Obama Relationship Could Impact 2016 Election

President Barack Obama and former Secretary of State Hillary Clinton have a long and complicated relationship. That relationship took another turn recently when Clinton criticized the president’s foreign policy. VOA National Correspondent Jim Malone reports there is renewed attention on the Clinton-Obama relationship as Hillary Clinton considers running for
Video

Video Iran Looks to Maintain Influence in Baghdad With New Shia PM

Washington and Tehran share the goal of stopping Syrian-based militants in Iraq. But experts say it's Iran, not the United States, that will most influence how the new government in Baghdad approaches internal reforms and the war in Syria. VOA State Department Correspondent Scott Stearns has the story.

AppleAndroid

World Currencies

EUR
USD
0.7492
JPY
USD
102.27
GBP
USD
0.5960
CAD
USD
1.0950
INR
USD
61.300

Rates may not be current.