IMF warns global crisis could lead to war

http://www.moneymarketing.co.uk/cgi-bin/item.cgi?id=183168&d=340&h=341&f=342

Leah Milner - 24-Mar-2009
The managing director of the International Monetary Fund has warned that the global financial crisis can exacerbate social unrest in emerging economies and even lead to war.
Speaking at a meeting of the International Labour Organization yesterday, Dominique Strauss-Kahn called for increased co-operation between the IMF and ILO, warning of the dire consequences of allowing the crisis to develop into a "wasteland of unemployment".



He said the international economy could start to recover in 2010, but this is dependent on bold policy decisions, reiterating his call for a global fiscal stimulus of 2 per cent of international GDP.

Strauss-Kahn warned that there are particular dangers in emerging economies, that have been dependent on the international community for capital.

He said:“IMF support in this case is not enough.

"These countries need to rebuild their model and learn to live with less capital inflow. Financial help alone without a change of policy is not useful."

He said that poor countries not only face the risk of unemployment and social unrest, but also threats to democracy and even war.