Maravi

Developing countries must focus on productivity - World Bank

COMMENT - Taking economic advice from the World Bank (headed by James "James Rothschild" Wolfensohn - his father worked for James Rothschild and named his son after his employer), is like having the village drunk as your Alcoholics Anonymous buddy. They should stop dishing out advice, start apologising for the damage and death they have caused around the world, and start discussing how they can make reparations. Oh and by the way, Africa and the world need to focus on DEMAND, not productivity.

Developing countries must focus on productivity - World Bank
By Gift Chanda
Wed 13 June 2012, 13:25 CAT

THE World Bank has advised developing countries such as Zambia to prepare for prolonged volatility in the global economy by re-emphasising medium-term development strategies.

In its newly-released Global Economic Prospects (GEP), the bank warned of tougher times ahead and urged developing countries to prepare and start implementing cautionary measures.

Hans Timmer, director of Development Prospects at the World Bank said global capital market and investor sentiment are likely to remain volatile over the medium term-making economic policy setting difficult.

"In this environment, developing countries should focus on productivity-enhancing reforms and infrastructure investment instead of reacting to day-to-day changes in the international environment," he advised.

The bank noted that a resurgence of tensions in high-income Europe has eroded the gains made during the first four months of this year, which saw a rebound in economic activity in both developing and advanced countries and an easing of risk aversion among investors.

"Since May 1, increased market jitters have spread," it stated.

"Developing and high-income country stock markets have lost some seven per cent, giving up two-thirds of the gains generated over the preceding four months. Most industrial commodity prices are down, with crude and copper prices down by 19 and 14 per cent, respectively, while developing country currencies have lost value against the US dollar, as international capital fled to safe-haven assets, such as German and US government bonds."

It explained that so far, conditions in most developing countries have not deteriorated as much as in the fourth quarter of 2011.

"Outside of Europe and Central Asia and the Middle-East and North Africa, developing country credit default swap (CDS) rates, a key indicator of market sentiment, remain well below their maximums from the fall of 2011," the bank stated.

Labels: NEOLIBERALISM, World Bank

posted by MrK @ 3:09 PM