By iMFdirect
The 2011 IMF-World Bank Annual Meetings are taking place in Washington DC as the global economy enters a dangerous new phase — financial markets jitters and risks to the recovery are giving everyone plenty to talk about. Here are our ‘must reads’ for the meetings.
- IMF members vowed collectively to do whatever it takes to tackle a “precarious situation” and restore both confidence and financial stability. Singapore Finance Minister Tharman Shanmugaratnam said “We face a confluence of sovereign debt and banking risks, with the epicenter of that being the euro area. But it is underpinned and complicated by the fact that we also face a weakening global economy, especially in the advanced economies, including the United States.”
- We kicked off the week with our latest assessments of the world economic outlook and global financial stability, as well as an updated look at the outlook for government debts and deficits.
- Managing Director Christine Lagarde set the scene for the meetings in a speech last week at the Woodrow Wilson Center, outlining the policies needed to achieve economic recovery and stability.
- The Managing Director underscored the need for policymakers to “act now and act together” at the Annual Meetings opening press conference and her speech to delegates.
- We also kicked off our program of seminars with a day-long event on how low-income countries manage volatile commodity prices and achieve inclusive growth. Hear more about the issue in this podcast.
- There will be a host of other events over the next several days, including a press conference on Saturday afternoon following the meeting of IMF ministers and governors, the annual Per Jacobsson lecture on Sunday, and a conference on Monday about on-the-ground training as countries struggle to deal with the crisis.
- In a recent interview, Reza Moghadam—head of the IMF’s Strategy, Policy and Review Department—previewed some of the main issues up for discussion. Watch this video to hear more about what he has to say.
Filed under: Annual Meetings, Economic outlook, IMF, International Monetary Fund Tagged: | 2011 World Bank-IMF Annual Meetings, Christine Lagarde, economic recovery, financial market turbulence, Fiscal Monitor, Global Financial Stability Report, global risks, low-income countries, Program of Seminars, World Economic Outlook
I really sympathise with average citizens of developing countries in these very difficult economic times. This is because unlike their counterparts in the developed countries, they are not cushioned against the effects of their dwindling economic situations. It is well known that any protectionist policies adopted by developed economies have a devastating effect on developing countries. The third world, out of desperation, turns to the same developed world for ‘sustainable solutions’ to their seemingly endless economic woes. What irony! I could go into greater detail but don’t want to sound like an old broken record. As we all know, the playing field is always unequal, tilted in favour of rich nations. The person that ultimately bears the burden in this vicious cycle of economic dependency is the common citizen of the developing world, for he has no one to fight for him.
In the European Union there are 27 countries with 27 central banks, plus the ECB; 27 heads of states and 27 ministers of finance.
In the euro zone there are 17 countries using a single currency– the euro, while the others have their own currencies– including the U.K.
Their monetary policies — those in the euro zone can’t adjust currency values while others can.
Most of the countries have broken the EU barrier w/r to debt/deficit limits.
Under the circumstances my question is: “WHO IS IN CHARGE OF THE CHATTERING TRAIN?”
Dear Madame Director and Fellows,
thank you for this opportunity.
My synthetic vision is the following:
The ongoing financial crisis in Europe and developed economies is mainly due to:
1) The shadow economy in each country whose size is as big as the same country economy or bigger and “out of control”. This should be put under control.
2) G-7 countries have “de facto” strongly helped China to develop. Now is the time them to return and to regulate: either they float their currencies or we have to protect our products, companies and families against this irregular competition, risks of hunger, financial difficulties and revolution. This is occurring whilst those who should be prepared to look after the country enjoy incredible earnings for jobs never done and without having the necessary competence; and with population being compelled to do anything to survive.
3) Today’s finance instruments too often allow resource misappropriation from those who produce them to those who want and take them, without any protection. Public debt trading, today, looks likely to be the most recent instrument. This has to be regulated too and politicians must take the side of the population, especially in this very difficult moment.
4) Finally, I do not find it “just” to sell our countries out.
5) I live in Brazil, and although the security risk is huge, top-level politicians (eg. Mrs Dilma, Mr. Lula) are very smart and are doing very good internal and international policy. We should follow their attitude and competence.
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