Developing countries to grow more slowly, warns World Bank
Wednesday 08 December 1999
The report also concludes that many areas of the world will miss the international target of halving the number of people, currently 1.2 billion, living on less than $1 a day by 2015. The Bank's first ever forecasts for poverty reduction predict that only Asia can be sure of meeting this goal and the scale of poverty will actually increase in sub-Saharan Africa.
The World Bank issued these warnings, in its annual Global Economic Prospects, despite revising up substantially its forecasts for average economic growth in the poor nations.
The Bank's economists predict developing economies will have grown by 2.6 per cent this year and will expand 4.2 per cent next year. These compare with forecasts of 1.5 per cent and 3.7 per cent published in April.
The report also foresees growth of 5 per cent a year on average from 2001-2008. But this compares badly with higher growth rates in the past, even though it remains higher than growth in the rich industrial countries. Joe Stiglitz, the World Bank's outgoing chief economist, said: "There is a growing consensus that in order to maximize the positive effects of growth that can come with openness, the international community must find ways to reduce the frequency and severity of economic crises."
According to the report, investment in emerging economies will take a long time to recover to pre-crisis levels, and will remain more volatile.
In addition, the crisis uncovered and even accentuated serious weaknesses in the structure of the economies affected. The biggest problem is the scale of the non-performing loans hanging over the banking sector and the high proportion of insolvent companies.
The crisis also demonstrated the need for better social safety nets. Although their flexible labour markets allowed lower wages and movement of people from towns to countryside to absorb some of the effects of the crisis, the penalty was a big increase in poverty and a sharp fall in middle class living standards.
The report is available at htttp://www.worldbank.org/prospects/
New essay by JK Rowling went live on Pottermore site on Friday
Top Gear presenter is no stranger to foot-in-mouth controversy
New UK station Russia Today gives a very bizarre view of Britain
- 1 Chinese authorities arrest 11 people over exhuming woman’s body to sell as corpse bride
- 2 Canadian actor punched in face after 'Islamophobia' experiment goes wrong in wake of Ottawa shooting
- 3 Woman blinded as a child can see again after hitting her head on a coffee table
- 4 Paul Hollywood: Police asked if I wanted them to arrest Mary Berry for vandalism after she 'defaced' my car
- 5 If you think Russell Brand’s new book is confused, you should read what his critics have to say about it
'Nasa Confirms Six Days of Darkness in December': No, they don't - it's a hoax
Tower of London poppies: Tens of thousands of people flock to see installation in its final days
Top Gear presenter Jeremy Clarkson criticised for beer tweet
Woman blinded as a child can see again after hitting her head on a coffee table
Bryan Adams' heartstopping images of wounded British soldiers to go on show at Somerset House
Pope Francis declares evolution and Big Bang theory are real and God is not 'a magician with a magic wand'
Huge surge in Ukip support after EU funding row, according to new poll
Ukip ‘exploiting grooming scandal’ to secure party’s first police chief
Nigel Farage: 'There’s nothing wrong with white people blacking up'
Maureen Lipman says 'she can't vote Labour while Ed Miliband is leader'
Pope Francis: 'Caring for the poor does not make you a communist'
iJobs Money & Business
£18000 - £23000 per annum + Comission: SThree: SThree, International Recruitme...
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...
£20000 - £23250 Per Annum pro rata: Clearwater People Solutions Ltd: Pro rata ...
£40 - 48k + Benefits: Guru Careers: We are seeking a Marketing Manager to join...