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World Bank Chief Criticizes the World

By DailyForex.com Team
The DailyForex.com team is comprised of analysts and researchers from around the world who watch the market throughout the day to provide you with unique perspectives and helpful analysis that can help improve your Forex trading.

Despite the show of support from France and Germany, Greece is still the center of a great deal of speculation over its potential debt default and continued membership in the eurozone. Undoubtedly, some difficult decisions lie in store for the country at the core of the sovereign debt crisis in Europe. World Bank chief Robert Zoellick has criticized the situation as a new economic danger zone. Speaking at George Washington University, he said, "?Unless Europe, Japan, and the United States can also face up to responsibilities they will drag down not only themselves, but the global economy." He also pointed out ironically that these were the same entities that had lectured China about responsibility as a global stakeholder only to find themselves in need of taking their own medicine.

The sharp message comes as a necessary reminder to developed nations to avoid complacency in the middle of a crisis. It may even seem to some that the crisis has reached its current level and been dragged on for so long mostly due to everyone in charge passing the buck. Where European countries are unable to agree on common roles and responsibilities, Japan has procrastinated with necessary economic and social reforms, and the United States remains locked in a power struggle between opposing political parties to delay cutting the deficit.

Referring specifically to these three, Zoellick noted "?They have procrastinated for too long on taking the difficult decisions, narrowing what choices are now left to a painful few." However, the future need not be a bleak one if the leaders of these nations can pull together and get the job done. Zoellick proposes adapting the concept of foreign aid to the creation of packages that provide targeted assistance in the growth and development of third world countries and the adoption of mutually beneficial trade policies rather than simply huge chunks of free handouts. Zoellick also champions the role of women in the future, acknowledging that half the world's population could not reach their full potential if gender inequality prevails. These are just two valid ways in which deficits can be minimized and resources can be maximized. It remains to be seen whether the world's superpowers are paying attention or will heed Zoellick's warning that "?with power comes responsibility."

DailyForex.com Team
About DailyForex.com Team
The DailyForex.com team is comprised of analysts and researchers from around the world who watch the market throughout the day to provide you with unique perspectives and helpful analysis that can help improve your Forex trading.
 

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