Widespread Unemployment Risks Social Crisis
The global economic recovery will be slow, increasing unemployment worldwide which raise the threat of social crisis and protectionism, said World Bank president, Robert Zoellick, in an interview for Spanish newspaper El Pais.
“What began as a major financial crisis and become a major economic crisis now turns into a crisis of unemployment, and if we do not take action, there is a risk of high human and social crisis, with major political implications“, said Zoellick.
“Populist policies and protectionist could gain. Finance ministers of the G7 and G20 show a certain relief because has slowed economic contraction. Although we still have a very low growth or decline, the situation is less bad, “he added.
World Bank President warned, however, that remain many dangers in the financial system of the United States and in emerging vulnerable economies.
“The United States has taken measures in right direction, but are still banks with great difficulties related to consumer credit, credit cards and real estate”; said Zoellick. He stated that there are still risks in Africa, Eastern Europe and in some countries in Latin America.
[...] Continued here: The world is threatened by the emergence of a major social crisis … [...]