Monday, May 25, 2009

World Bank warns of social unrest

The head of the World Bank has warned that the global economic crisis could lead to serious social upheaval
BBC News Service

"If we do no take measures, there is a risk of a serious human and social crisis with very serious political implications," Robert Zoellick said.

He pointed to Eastern Europe, which faces the "tricky situation" of fast-shrinking economies and protests.

Mr Zoellick suggested governments should start preparing for high levels of unemployment.

"In my opinion, in this context, nobody really knows what is going to happen and the best one can do is be ready for any eventuality," Mr Zoellick said in an interview with Spain's El Pais newspaper.

"There is also what I call the 'X-factor', that one can not foresee," such as the recent outbreak of swine flu, he said.

"Latin America has remained reasonably stable, even if Mexico and Central America are under pressure because they rely a lot on the North American market," Mr Zoellick added.

It was reported last week that Mexico's economy shrank by 8.2% in the first three months of this year compared with a year earlier. Mexico sends 80% of its exports to the US.

Other economies in Eastern Europe have registered double-digit declines in GDP, such as Latvia and Estonia, while the retiring Bank of England rate-setter David Blanchflower has said at least one million more people in the UK will lose their jobs.

The World Bank has previously warned of a "human catastrophe" in the world's poorest countries unless more is done to tackle the global economic crisis.

It said an extra 53 million people are at risk of extreme poverty.

1 comment:

Anonymous said...

Greetings Economists and Governments of the World...

So what is the solution to the Global Economic Crisis?! To the Educated fools...I say....Change the economic system! Try All 'Things In Common' The Economic System pioneered by the Hebrew Israelite Community.

A Communal System in which all contribute according to a tithing System and every one receives according the their needs.

But I suppose the paranoid fear of the Western Capitalist Economies is to do with any thing sounding remotely like Communism. There is no more "Red under the bed" her of she whold be a skeleton by now!

Mind that ideology, took GOD out of the ethos of their system, so it had to collapse.

On the other hand, Capitalism took equity and justice out their system with the vulgar rich alongside the destitute poor. Now as the profit-motive became so "led to risk-taking unprecedented in America.. leading to the collapse of Capitalism!

Rather than tinker with the inherently flawed system.....President Obama should go the whole mile and dismantle Capatalism and institute 'All Things In Common'.....Crime will drop signifiantly and Bill Gates would be given and opportunity to be altruistic.......

But what do I know? I live in the bush....

Back to the Rainforest where there is 'All in Common' with the Flora nd Fauna.

Rainforest Princess