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

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

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.
Israel Targets Gaza Supply Tunnelsi
X
July 24, 2014 4:42 AM
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 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 MH17's 'Black Boxes' Could Reveal Crash Details

The government of Malaysia now has custody of the cockpit voice and flight data recorders from Malaysia Airlines Flight 17, which was hit by a missile over Ukraine before crashing last week. As VOA's Carolyn Presutti reports, the so-called black boxes may hold information about the final minutes of the flight.
Video

Video Living in the Shadows Panel Discussion

Following a screening of the new VOA documentary, "AIDS - Living in the Shadows," at the World AIDS conference in Melbourne, a panel discussed the film and how to combat the stigma associated with HIV/AIDS.
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 Relic of Saint Draws Catholics Worried About Immigration Issue

A Roman Catholic saint who is a figure of devotion for those crossing the border into the United States is attracting believers concerned about the plight of undocumented immigrants. Mike O'Sullivan reports from Los Angeles, where a relic of Saint Toribio has drawn thousands to local churches.
Video

Video US Awards Medal of Honor for Heroics in Bloodiest of Afghan Battles

U.S. combat troops are withdrawing from Afghanistan, on pace to leave the country by the end of this year. But on Monday, U.S. President Barack Obama took time to honor a soldier whose actions while under fire in Afghanistan earned him the Medal of Honor. VOA's Jeff Seldin has more from the Pentagon.
Video

Video Ukraine Rebels Surrender MH17 Black Boxes

After days of negotiations, a senior separatist leader handed over two black boxes from an airliner downed over eastern Ukraine to Malaysian experts early Tuesday. While on Monday, the U.N. Security Council unanimously demanded that armed groups controlling the crash site allow safe and unrestricted access to the wreckage.
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.