Monday, April 27, 2009

Guest Post: The World Economy goes from bad to worse

The Following is a guest post from my friend and colleague, Rosa vargas:

I came across this little piece of news this morning:

It covers this past weekend meeting of the World Bank and the IMF to discuss what further actions are needed to face the global crisis. This caught my attention: Bank President Robert Zoellick expressing the bank's concern that the economic crisis will become a calamity for poor countries. "There is a widespread recognition that the world faces an unprecedented economic crisis, poor people could suffer the most and that we must continue to act in real time to prevent a human catastrophe."

What is it that they plan to do? "The bank will respond by tapping its healthy balance sheet to increase lending." Brilliant! Because your lending has helped so much in the past, right? Because between the two of you, you have managed to help strengthen the economy of so many previously "poor countries," rather than sending them further down and keeping them there? Of course the idea of condoning the existing debt of these countries never crossed their minds. Protesters in Washington have an even better idea: "IMF, tear it down. World Bank, tear it down."

Anyway, no surprises here but I thought to share.


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