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

Sydney Hostage-taker Failed to Manipulate Social Media

Gunman forced captives to use personal Facebook, YouTube accounts to issue his demands; online community helped flag messages, urged others not to share them More

UN Seeks $8.4 Billion to Help War-Hit Syrians

Effort aimed at helping Syrians displaced within their own country and those who've fled to neighboring ones More

Who Are the Pakistani Taliban?

It's an umbrella group of militant organizations whose objective is enforcement of Sharia in Pakistan 'whether through peace or war' 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.
Putin: Russian Economy to Rebound in 2 Yearsi
X
December 18, 2014 5:13 PM
Russian President Vladimir Putin held his annual end-of-the-year news conference Thursday, tackling questions on the Russian economy, the crisis in Ukraine and Russian relations with the west. VOA's Jeff Custer reports.
Video

Video Putin: Russian Economy to Rebound in 2 Years

Russian President Vladimir Putin held his annual end-of-the-year news conference Thursday, tackling questions on the Russian economy, the crisis in Ukraine and Russian relations with the west. VOA's Jeff Custer reports.
Video

Video Nigerians Fleeing Boko Haram Languish in Camp Near Capital

In its five-year effort to impose Islamic law in northeastern Nigeria, the Boko Haram extremist group has killed thousands of people and forced hundreds of thousands to flee. Some of those who ran for their lives now live in squalor on the edges of the capital, Abuja. Chris Stein reports for VOA.
Video

Video Detained Turkish Journalists Follow Teachings of US-Based Preacher

The Turkish government’s jailing of critical journalists has sparked international condemnation and is being seen as an effort to undermine the followers of an ailing Turkish preacher based in the United States. VOA religion reporter Jerome Socolovsky has more.
Video

Video Will Pakistan School Shooting Galvanize Pakistan Against Extremism?

The attack on a military school in Pakistan’s northwest city of Peshawar left 141 dead, including 132 children. Strong statements of condemnation poured in from across the world. The country announced three days of mourning, and the leadership, both political and military, promised retribution. VOA's Ayesha Tanzeem looks at how likely the Pakistani government is to clamp down on all extremist groups.
Video

Video ‘Anti-Islamization’ Marches Increase Tensions In Germany

Anti-immigrant rallies in Germany have been building in recent weeks, peaking Monday night in the city of Dresden where tens of thousands of people turned out to demonstrate against what they call the ‘Islamization’ of the West. Germany has offered asylum to more Syrian refugees than any other country, and this appears to have set off the protests. Henry Ridgwell reports from London.
Video

Video Aceh Rebuilt Decade After Tsunami, But Scars Remain

On December 26, 2004 there was an earthquake in the Indian Ocean so powerful it caused the Earth’s axis to wobble a few centimeters. Onshore on the island of Sumatra, the resulting tsunami was devastating. A decade later, VOA Correspondent Steve Herman reports from Banda Aceh, Indonesia, where although there is little remaining evidence of the physical devastation, the psychological scars among survivors remain.
Video

Video Refugees Living in Kenya Long for Peace in the Home Countries

Kenya is host to numerous refugees seeking safe haven from conflict. Immigrants from Somalia face challenges in their new lives in Kenya. Ahead of International Migrants Day (December 18) Lenny Ruvaga has more for VOA News from the Kenyan capital.
Video

Video Turkey's Authoritarianism Dismays Western Allies

The Turkish government has been defiant in the face of criticism at home and abroad for its raids targeting opposition media. The European Union on Monday expressed dismay after President Recep Tayyip Erdogan lashed out at Brussels for criticizing his government's action. Turkey's bid to be considered for EU membership has been on hold while critics accuse the NATO ally of increasingly authoritarian rule. Zlatica Hoke reports.

All About America

AppleAndroid

World Currencies

EUR
USD
0.8140
JPY
USD
118.81
GBP
USD
0.6402
CAD
USD
1.1597
INR
USD
63.066

Rates may not be current.