- Prison Planet.com - http://www.prisonplanet.com -

U.S. Downturn Dragging World Into Recession

Posted By admin On March 9, 2009 @ 10:52 am In U.S. News | Comments Disabled

Anthony Faiola
Washington Post [1]
Monday, March 9, 2009

The world is falling into the first global recession since World War II as the crisis that started in the United States engulfs once-booming developing nations, confronting them with massive financial shortfalls that could turn back the clock on poverty reduction by years, the World Bank warned yesterday.

The World Bank also cautioned that the cost of helping poorer nations in crisis would exceed the current financial resources of multilateral lenders. Such aid could prove critical to political stability as concerns mount over unrest in poorer nations, particularly in Eastern Europe, generated by their sharp reversal of fortunes as private investment evaporates and global trade collapses.

In its report, released ahead of a major summit of finance ministers in London this week, the World Bank called on developed nations struggling with their own economic routs to dedicate 0.7 percent of the money they spend on stimulus programs toward a new Vulnerability Fund to help developing countries.

(ARTICLE CONTINUES BELOW)

U.S. Downturn Dragging World Into Recession 335x205 graph128c aj [2]

The report predicted that the global economy will shrink this year for the first time since the 1940s, reducing earlier estimates that emerging markets would propel the world to positive growth even as the United States, Europe and Japan tanked. The dire prediction underscored what many are calling a mounting crisis within a crisis, as the downturn that started in the wealthy nations of the West washes over developing countries through a pullback in investment, trade and credit. Despite the United States’ position as the epicenter of the crisis, investors are flocking to U.S. Treasury bills and the dollar, squeezing developing nations out of global credit markets.

“We need to react in real time to a growing crisis that is hurting people in developing countries,” World Bank President Robert B. Zoellick said in a statement. Action is needed by governments and multilateral lenders “to avoid social and political unrest,” he said.

Full article here [3]


Article printed from Prison Planet.com: http://www.prisonplanet.com

URL to article: http://www.prisonplanet.com/us-downturn-dragging-world-into-recession.html

URLs in this post:

[1] Washington Post: http://www.washingtonpost.com/wp-dyn/content/article/2009/03/08/AR2009030801216.html?hpid%3Dtopnews&sub=AR

[2] Image: http://www.efoodsdirect.com/products.html

[3] Full article here: http://www.washingtonpost.com/wp-dyn/content/article/2009/03/08/AR2009030801216.html?hpid=topnews&sub=AR

[4] World Bank offers dire forecast for world economy: http://www.prisonplanet.com/world-bank-offers-dire-forecast-for-world-economy.html

[5] As Europe Goes (Deep In Recession), So Does Half The World’s Trade: http://www.prisonplanet.com/as-europe-goes-deep-in-recession-so-does-half-the-worlds-trade.html

[6] The “Current Housing Recession is Rivaling the Great Depression’s Real Estate Downturn [and] Will Easily Eclipse It In the Coming Months”: http://www.prisonplanet.com/the-current-housing-recession-is-rivaling-the-great-depression%e2%80%99s-real-estate-downturn-and-will-easily-eclipse-it-in-the-coming-months.html

[7] Investors Remain on Edge Amid Recession Worries: http://www.prisonplanet.com/investors-remain-on-edge-amid-recession-worries.html

[8] World Bank warns that euro collapse could spark global crisis: http://www.prisonplanet.com/world-bank-warns-that-euro-collapse-could-spark-global-crisis.html

Copyright © 2013 PrisonPlanet.com. All rights reserved.