IMF, WB leaders warns of risks to global growth
IMF chief Rodrigo de Rato on Tuesday welcomed the passage of reforms giving a bigger voice to four emerging economies, but warned that the members face daunting challenges in keeping global growth on track.
SINGAPORE: IMF chief Rodrigo de Rato on Tuesday welcomed the passage of reforms giving a bigger voice to four emerging economies, but warned that the members face daunting challenges in keeping global growth on track.
"The global growth cycle may be turning," de Rato said, pointing to high oil prices, massive imbalances in trade and investment and the threat of renewed protectionism amid stalled world trade talks.
Meanwhile, World Bank President Paul Wolfowitz chided wealthy countries to follow through on promised aid to Africa, the one region he said has been "conspicuously left behind."
"The international community is at risk of falling short on its commitments to increase aid to Africa," Wolfowitz told delegates attending the annual meeting of the World Bank, which lends money to help developing nations fight poverty, and its sister institution, the International Monetary Fund.
"I remain convinced that Africa has to be our number one priority," he said, highlighting in particular the needs of countries that have recently emerged from crises, such as Sierra Leone, Liberia and the Democratic Republic of Congo.
De Rato and other finance leaders from around the world pressed for reviving the Doha Round of World Trade Organsation talks that collapsed in July amid disagreements over how much to cut agricultural trade barriers.
"The stakes are too high to accept failure," de Rato said. "I call on the G-7 countries and the major emerging market economies to intervene quickly to conserve the gains made in negotiations made so far, and to put the Doha Round back on track."
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