Recession Going Global
As the economy goes cliff diving, the effects are being felt around the world.
In its new report, prepared for a meeting next week of finance ministers from the 20 industrialized and large developing countries, the World Bank warned that the financial disruptions are all but certain to overwhelm the ability of institutions like it and the International Monetary Fund to provide a buffer.
Robert B. Zoellick, president of the World Bank, pleaded for wealthy governments to create a â€œvulnerability fundâ€ and to set aside a fraction of what they spend on stimulating their own economies to help others.
â€œThis global crisis needs a global solution and preventing an economic catastrophe in developing countries is important for global efforts to overcome this crisis,â€ Mr. Zoellick said in a statement. â€œWe need investments in safety nets, infrastructure, and small and medium-size companies to create jobs and to avoid social and political unrest.â€
This isn’t ending any time soon.