If you have something to say...
Say it on the Huffington Post
If you have something to say...
Say it on the Huffington Post
The Blog
Since Europe has by far the largest banking system in the world, the eurozone crisis is also a significant drag on growth and employment throughout most of the world, and could easily do more damage if it is not resolved.
It's not only all about a dilemma but about how the Greek nation -- and especially young people -- will find again a reason to hope and believe that their future can get better, even if Greece after the very crucial next general elections can make it and stay hopefully in the eurozone.
In previous global downturns, sub-Saharan Africa has usually been badly affected -- but not this time around. But in sub-Saharan Africa, growth for the region as a whole has remained reasonably strong.
The Greek election should be seen for what it is: a repudiation of the medicine Greece has been given over the past four years -- whether it deserved it or not -- with unintended and unforeseen consequences.
I know what you are thinking: "Who cares?" Well, try to keep reading, because this does have implications beyond the sprawling soybean farms in the Argentine province of Cordoba. What does it mean to have a "commodities boom," or growth driven by the export of commodities?
Since the political middle ground has failed to deliver, voters are seeking solace through increasingly political candidates spouting extremist rhetoric, and raising the prospects of parties on the far right and left.
The news on the jobs front, unfortunately, remains grim. Why isn't the jobs picture better? Quite simply, it's because the growth picture isn't very good.
The IMF's public approval of mortgage reductions, as well as reform in the financial sector, is intended to provide support to the economy and reignite a healthy increase in lending, which will spur economic and job growth.
The quest for lasting financial stability is still fraught with risks. The latest Global Financial Stability Report has two key messages: policy actions have brought gains to global financial stability since our September report; but current policy efforts are not enough to achieve lasting stability.
When it comes to adjusting public spending, getting the balance right is important. Fiscal adjustment is taking place in economies around the world, but risks remain high.
What is of interest here to note is that for the first time ever, investors have more confidence in a Chinese-owned company than in a European one, which truly puts in perspective how much things have changed in our world economy.
For the past six months, the world economy has been on what is best described as a roller coaster.
It turns out, unfortunately, that the financial and fiscal problems associated with longevity may be a lot bigger than we thought. The good news is that if we act now, we can find solutions that limit hardship and disruption.
The opening up of the contest for World Bank president is a historic change whose significance has not been fully appreciated. This is not surprising, given the widespread misunderstanding of the IMF and World Bank.
To get back to health, Greece needs two things. First, a lower debt burden. Second, improved economic competitiveness. The new program addresses both.
To solve the problems of youth unemployment restoring global growth is crucial, as are policies to support job creation and credit. None of this can be achieved without global cooperation.Â
