Financial Crisis Continues To Reverberate
World Bank Jim Yong Kim warned that the global economic slowdown could have its most negative impact on poorer countries, even erasing the gains made by Africa and Latin America.
The International Monetary Fund echoed Kim’s dire assessment, asserting that financial crisis could have a more lasting impact on global economies than anticipated.
This week the IMF downgraded its global growth estimates, partly as a consequence of the failure of Washington to reach a consensus on a path to avert the fiscal cliff.
Some, including former World Bank President Robert Zoellick view the inability to deal with national debt and the fiscal cliff as indirect threats to US national security.
Zoellick maintains that America can not enjoy national security without ensuring economic security and that requires addressing the growing national debt.
“We need a fuller appreciation of the links between economics and security to match the times. The world continues to struggle through a global economic crisis that began in the United States. Fears, fragilities, and failures fuel tensions within and among countries. Leaders are under protectionist and nationalist pressures — in trade, but also regarding currencies, investments, resources, and the oceans. These frictions risk a downward economic spiral and even conflict,” writes Zoellick.