With the credit crunch continuous extension to major markets around the globe, it is clearly evident that the world economy is heading for a recession. But the World Bank Group President, Robert B. Zoellick, is hopeful that world economy will bounce back on track.
At a meeting held in Washington DC over the weekend, by leaders of the world and their finance ministers, Zoellick was optimistic that the outcome of the summit would be backed with follow up actions, in order to stimulate the economy.
“If September and October were about coordinated and cooperative monetary policies, then November and December will be increasingly about starting fiscal stimulus. China's recent $580 billion stimulus package was well timed, and shows leadership. Further decisive actions will be needed. Such actions must take into account the interests of the poor and most vulnerable in developing countries,” noted Zoellick.
Zoellick was however happy with the positive step forward that leaders of developed economies were in constant touch with their counterparts from the rising economic powers, a situation he said, was a step in the right direction to strengthen the ailing world economy.
According to him, much as the big economies were finding solutions to their problems, greater attention also was needed for the poorest developing countries, to salvage them from the shackles of economic darkness.
He welcomed the reaffirmation by the Heads of Government on the importance of the Millennium Development Goals (MDGs), and their commitment to honour their pledges of overseas aid.
“If we are going to avert a human crisis, we will have to do more. At $100 billion a year, the amount spent on overseas aid is a drop in the ocean, compared to the trillions of dollars that are now being spent on financial rescues in the developed world,” he noted.
Zoellick said his outfit would continue to stretch, by expanding its funding, ideas, innovative products, and partnerships, to help developing countries.
He also welcomed the commitment to increase the voice and representation of emerging and developing economies in the governance structure of the Bretton Woods institutions.