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(DAILY MAIL ZM) IMF urges member states to focus on job creation

IMF urges member states to focus on job creation
October 12, 2012
By NANCY MWAPE in Tokyo, Japan

THE International Monetary Fund (IMF) has called on its member countries to focus on creating conditions for growth that are more inclusive and generate jobs among young people.

Speaking at a media briefing during the IMF and World Bank annual meeting, the fund’s managing director, Christine Lagarde says there is need to support job-rich growth adding that the unemployment rates among young people are terrifying and unacceptable.

“We have worked long and hard over the years to prepare ourselves to be in position to provide better services, better surveillance to be fully equipped financially to respond to the demands of our membership.

“We really want, together with our members to go through what needs to be done, what action needs to be taken in order to make sure that recovery is really here for the longer term and is sustainable,” she said.

Ms Lagarde said there is a level of uncertainty that is hampering decision makers from investing, creating jobs and developing values, adding that the IMF is not expecting strong growth this year.

“Where should we see action, Certainly in Europe and more specific ally in the Eurozone, which is still at this point the epicenter of the crisis and where most urgent action is needed,” she said.

She also called on emerging markets to keep close watch on vulnerabilities, whether they are domestic vulnerabilities or external.

She said there is need for action that lifts the veil of uncertainty, adding that action is required for countries with the legacy of high debt.

Ms Lagarde said there is need for countries to face up to the fundamental issues of global imbalances that are widening as growth picks up.

Speaking at a separate briefing, World Bank president Jim Yong Kim said the bank’s job is to ensure that growth registered in developing countries in Asia and Africa over the last five years is not destroyed by further worsening in the situation.

“We are in challenging times. Food prices remain high and volatile, growth in high-income countries is weak, and developing countries which have been the engine of growth, will not be immune to the increased uncertainty in the global economy,” he said.

The World Bank has launched a global online conversation campaign dubbed “What Will it Take to End Poverty” as part of starting a dialogue around barriers and solutions to ending poverty.

Dr Kim said it is everyone’s job to have a catalytic effect on poverty adding that the bank wants to fight poverty and make a difference in history.

“It’s been my life’s work and I have worked in situations of great poverty and this organisation is embracing this fundamental mission…While I’m excited by how much the bank has changed around openness and results and accountability, I believe the bank can go further. We need to be more nimble and focused on delivery,” he said.

Labels: CHRISTINE LAGARDE, IMF, NEOLIBERALISM

posted by MrK @ 4:01 PM