Maravi

World Bank urges country-specific challenge focus

World Bank urges country-specific challenge focus
By Mutale Kapekele
Tue 07 June 2011, 17:10 CAT

THE World Bank says developing countries should focus on country-specific challenges such as achieving balanced growth through structural reforms as the world moves from the financial and economic crisis.

In its June 2011 edition of Global Economic Prospects, the World Bank says developing
countries were still clouded by crisis-related problems such as high unemployment.

“As they put the financial crisis behind them, developing countries need to focus on tackling country-specific challenges such as achieving balanced growth through structural reforms, coping with inflationary pressures, and dealing with high commodity prices,” the World Bank said.

“In contrast, prospects for high-income countries and many of Europe’s developing countries remain clouded by crisis-related problems such as high unemployment, household and banking-sector budget consolidation, and concerns over fiscal sustainability among other factors.”

The World Bank projects that as developing countries reach full capacity, growth
will slow from 7.3 per cent in 2010 to around 6.3 per cent each year from
2011-2013.

“High-income countries will see growth slow from 2.7 per cent in 2010 to 2.2
per cent in 2011 before picking up to 2.7 per cent and 2.6 per cent in 2012 and
2013 respectively,” the Bank projected.

Commenting on the new publication, World Bank chief economist and senior
vice-president for development economics, Justin Yifu Lin, said current global
economic trends could curb economic growth and negatively affect the poor.

“Globally, GDP is expected to grow 3.2 per cent in 2011 before edging up to 3.6
per cent in 2012,” said Lin. “But further increases in already high oil and food
prices could significantly curb economic growth and hurt the poor.”

Labels: NEOLIBERALISM, World Bank

posted by MrK @ 1:53 AM