The year 2010 saw China, India and Brazil continue to drive growth in the global economy, while the United States and parts of Europe are stuck with debt and unemployment.
Robert B. Zoellick, World Bank President meets RM Schneiderman for Newsweek about the outlook for the global economy.
What is the biggest problem for developing countries in 2011?
• the risk of a sharp rise in food prices
How to ensure food security against rising prices?
• increasing levels of productivity and food production by small farmers in sub-Saharan Africa (see World Food Programme and the Bill and Melinda Gates Foundation)
• Bank door 6 to 8 billion dollars in its annual effort on Agriculture
• Control the volatility of production factors (eg: energy) and other external data affecting prices up (information, monitoring and forecasting)
And the global economy?
• prevent overheating in emerging markets
• debt management and financial problems in Europe.
• Create jobs and manage the deficit in the U.S.
What will you think the biggest economic challenge this year, and why?
• mitigate the adverse effects of differences between countries on the international monetary system
• sustainable growth and balanced benefits for all.
What a great success of 2010 seems to continue in 2011?
• growth in developing countries and improving the quality of their human resources.
• these countries offer new export opportunities for developed countries
• multipolar world must adopt a modern cooperation as the private sector.
How to ease monetary tensions between China and the United States?
• China should revalue its currency and less support its businesses to reinvigorate domestic demand (by encouraging consumption increase and savings reductions)
• United States will reverse to reduce the deficit by enhancing productivity gains and innovations to generate growth.
• Other countries should manage their structural unemployment by cooperative solutions to avoid devastating conflicts.
Would a return to the gold standard be beneficial?
• the dollar should remain the dominant currency but not exclusively in the new economy still open but multipolar
• gold will be an informational tool, gauge degree of market confidence
• The IMF continues to play its role of arbiter.
. How the U.S. can they reconcile the return to growth with persistent unemployment?
• by stimulating domestic demand pushed by private sector over public.
• With good coaching, private companies will create jobs and boost growth.
In the absence of effective global agreement on climate, what role the World Bank can play to reduce emissions?
• work to reduce emissions from deforestation
• promoting growth with optimal management of current and future energy
• carbon sequestration in soil
• Climate Investment Funds Leveraged (multiplication by 8) on other funding sources.
How important are cities in the debate on climate change?
• urban emit 80% of greenhouse gas emissions even if they suffer the costs.
• Local initiatives for mitigation and adaptation (eg: Amman, Sao Paulo)
• Studies of vulnerability of coastal cities with UNEP and UN Habitat.
What do you expect the meeting in Davos?
• an abundance of ideas to solve and anticipate the challenges of the world
• concrete proposals to governments, the G-20, international institutions and individuals.
Which countries are targeted under you, to be the major emerging economies of the future?
• Sub-Saharan Africa in 2010 had a GDP growing by 4.7% above the world average of 3.9%
• For 2011, this projection is 5 to 6%
• Priorities of the first Group_ 1 / 3 of Africa: access to energy, agriculture, infrastructure.
• Second groupe_2 / 3 _countries rich in energy resources: good governance, fight against corruption, economic openness and inclusive growth.
• Third groupe_3/3_countries in conflict: peace, security, stability.
• The private sector (eg: Telecom has invested 56 billion dollars the number of mobile subscribers has increased from 4 million to 400 million) benefit from improving economic environment.