13/03/2010
3 international organizations: The world economy no longer needs to stimulus programs
A report issued by three international organizations, the Organization for Economic Cooperation and Development, and «UNCTAD», the World Trade Organization, the economic stimulus programs and the financial sector support launched by the world governments and the 20th groups no longer necessary, pointing out that the phase-out is required especially in some elements such as direct financial support and the country purchasing for the products of these sectors.
The report indicated that the problem now is in the «emergency measures, », as a support programs to the investment and financial sector and local services taken by the countries to support the advancement of these sectors.
Below are more details:
Three organizations represented by: Organization for Economic Cooperation and Development, UNCTAD and WTO, a issued a joint report to monitor the commitments and the steps taken by the countries of the world, especially the top twenty countries for the implementation of decisions of the Summit and during the period of September, 2009 until February ,2010. Seoul will host the fourth summit of the Group for the Twenty in next November.
This report is considered as the second report issued by the organizations mentioned in the framework of the tasks entrusted to it by the 20th summit conference, held in London next year, and pave to assess the commitment of the twenty countries twenty pledges made at the summit, and preparation to hold a summit next time later this year in Korea and agree on the next steps.
The report included an overview of trade and employment developments and investment in the world, and actions taken by the countries to stimulate global trade, and actions taken by countries to stimulate the flow of international investments.
The outstanding note is that the report did not mention the name of any Arab country to contributed in the global efforts to implement the decisions of the top twenty, both efforts to stimulate the economy and trade or investment.
. The report said that world trade has dropped by 12 per cent during 2009, which returned to the level that it was in 2006. But there are signs in recent months on the resumption of growth of world trade, particularly in the Asia Pacific region led by China, as well as some countries of East Asia, where Chinese trade grew by 9.1 per cent during the last quarter of 2009, trade with developed countries grew by 4.1 per cent during the last quarter of 2009.
While the U.S. trade deficit narrowed by 38 per cent in 2009 to reach $ 547 billion, compared with 882 billion dollars in 2008, China's trade surplus dropped by 34 percent to 196 billion dollars.
The International Labor Organization reported the loss of 27 million people lost their jobs during 2009, bringing the number of unemployed in the world to about 200 million people. The unemployment rate is expected to remain high through 2010.
As for global investment, the report is expected to drop by 39 per cent in 2009 to a trillion dollars, compared with $ 1.7 trillion in 2008. And possibly improves during the last two quarters of 2009, but that was not enough to cover the retreat caused during the first half of the year.
And the actions taken by the countries of the world to stimulate world trade and the removal of restrictions on free movement of trade and refused to discarding, the report said that the Twenty Group avoided imposing further restrictions on trade and investment since the summit, in London, but interesting to consider the growing problem of unemployment in the industrialized world, which a serious problem should be tackled further action at the next summit, especially as over a period of recovery is uncertain, should also act quickly on the liberalization of the multilateral trading system which talks of the Doha Round.
He added that the commitment of the Twenty Group at the top of their commitments has been uneven in many cases during the period of September, 2009 and until February, 2010.
Also many countries has taken protective measures, direct and indirect, such as increasing customs and non-customs restrictions, and still maintain the mechanisms for the reduction of imports under discarding lawsuits. In the area of investment, the response was greater.
The report also noted that the economic stimulus programs and the financial sector support still exist, but the phase-out is required especially in some of its elements, such as direct financial support and the country by buying the products of these sectors, as the report indicates.
The statement mentioned that the Twenty Group will work together to meet these commitments, for the global economy out of recession and prevent a crisis like this in the future, by increasing the amount of resources available to the International Monetary Fund has tripled to reach $ 750 billion, and provide dedicated support new special drawing rights worth up to $ 250 billion, providing $ 100 billion, at least in the form of additional lending by multilateral development banks.
To ensure the provision of 250 billion dollars to support trade finance, and the use of additional resources from the gold sales in the IMF for backing the poorer countries, they arrange for the additional $ 1.1 trillion dollars to support the restoration of credit, growth and jobs in the global economy. An unprecedented scale. It also pledged to engage in significant fiscal expansion and unprecedented that would save or create millions of jobs. It is expected that the cost of the end of this year to five trillion dollars, and increase production by 4 per cent, and accelerate the transition economy to a clean environment .
