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World Bank: Economy worst since Depression
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by zeet | March 9, 2009 at 04:32 am
215 views | 22 Recommendations | 10 comments
World Bank says global economy to shrink for first time since World War II, dragged down by sharp decline in industry, trade.
The world economy is on track to post its worst performance since the Great Depression, with developing countries bearing much of the economic pain, the World Bank said Monday.
Those countries face a credit shortfall of up to $700 billion, the bank said.
"The global economy is likely to shrink this year for the first time since World War II," the bank said, noting that global industrial production, by the middle of 2009, could be as much as 15% lower than in 2008.
Based on those projections, world trade is on track to record its largest decline in 80 years, with the sharpest losses expected in East Asia.
The World Bank, which helps finance the debt of developing nations, says the financial crisis will have long-term implications for them.
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Most RecentMost Recommended Comments (10)
at 09:05 on March 9th, 2009
The World Bank is vested in poverty. It's aid to developing countries is contingent on benefits flowing to the 'developed'.
With more than 10,000 employees worldwide, WB has a fascinating origin and history.
WB is a creature of the Bretton Woods Agreement, the outcome of a 1944 meeting of UN countries that met to chart a course for the world's recovery from World War II.
Some argue that Bretton Woods paved the way for the free trade agreements that now supersede governments' authority to act in the best interests of their citizens. It contributed to the rise of unbridled capitalism, the results of which we are feeling now as average people struggle in the wake of the 'global economic crisis'.
at 09:18 on March 9th, 2009
"Some argue that Bretton Woods paved the way for the free trade agreements that now supersede governments' authority to act in the best interests of their citizens."
I agree. Good post!
at 11:20 on March 9th, 2009
Economy worst since depression: better to confirme the world (enters or) is in depression.
As long economists in charge don't understand the deeper meaning of this crisis we'll be in this depression for a very long period of time. Say 10 - 20 years. Very disturbing. But the consumer economy we just have left behind us, generated huge quantities of everything, with a manufacturing overcapacity that causes today's glut. We don't need any more! Saving the car industry, which widely is called for, to keep people off the dole is wrong. Production capacity has got to be reduced with at least 30% or even more depending on the right (in)actions undertaken by policymakers. For example producing cars nobody is able or willing to buy, increases the glut and is a flagrant waste of taxpayers' money by the Governments. If no private investor is willing to invest in such factories the Governments should refrain from giving money to them. Mutates mutandis this counts for all branches of industry. Every wisdom should be invested and applied to get us out Why not Under the lead of the World Bank? And.. let Mr. Market do the job!
The East block countries are in dire state, the big question will be whether the EU is willing and able to bail them out. Probably it will become: Forget Global - Act Local?
See also:
http://my.nowpublic.com/world/economy-s-turnaround-part-3# and
http://my.nowpublic.com/world/bailouts-no-solution
at 11:32 on March 9th, 2009
Very, very true PIM!
at 12:19 on March 9th, 2009
You also can view it this way: The world economy is in a period of negative growth. Stronger: In other words it's in a period of positive collapse! That's why the Great Depression was so great, after all. What's positive about this depression is that it is clearing away a generation's worth of mistakes, mis-allocations of resources and mislaid confidence.
at 12:23 on March 9th, 2009
And we are as usual learning it the hard way. Change is on its way, not only here in US.
at 12:38 on March 9th, 2009
For all other readers as well: We should be happy to witness all this what is taking place and still to come. Stay tuned and not miss-out on the details at:
http://my.nowpublic.com/world/economy-s-turnaround-part-2#
and my previous and later publications.
at 04:37 on April 26th, 2009
"Those countries face a credit shortfall of up to $700 billion, the bank said."
A "credit shortfall of up to $700 billion" sounds like a bunch of crap to me where "CRAP" is juxtaposed as TARP.
"The World Bank, which helps finance the debt of developing nations, says the financial crisis will have long-term implications for them."
The World Bank IS THE PROBLEM
at 04:51 on April 26th, 2009
The World Bank states: noting that global industrial production, by the middle of 2009, could be as much as 15% lower than in 2008. My conclusion: that's half way the downturn count with 30% before the bottom is reached.
at 07:22 on April 26th, 2009
Most bankers are conservative in their projections and especially in this matter since they fear a run on the bank. My opinion is that it could be realistic that we might possibly reach the 30% you suggest within the timeframe stated by the World Bank.