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IMF''s Strauss-Kahm warns of "lost generation" of jobless

By Heather Yamour WASHINGTON, Oct 8 (KUNA) -- IMF Managing Director Dominique Strauss-Kahn cautioned Friday that despite the return of economic growth, the world still faces the risk of a "lost generation" in the coming years.
"We are gathered here at a pivotal moment facing a very uncertain future," Strauss-Kahn said at the plenary meeting for the International Monetary Fund (IMF) and the World Bank.
"Growth is coming back, but we all know that it is fragile and uneven. Looking to Asia, South American and Africa are going doing well. But in Europe recovery is "sluggish" and in the US remains "subdued", He asserted.
Strauss-Kahn said it is not likely that the global economy will experience a double-dip recession serious downsides remain a threat. These include mounting public debt, especially in advanced economies; high unemployment following the global economic crisis that severed 30 million jobs world-wide.
"We need to look for growth and we need to look for jobs," He told finance ministers from around the world gathered for the annual meetings of the 187-nation IMF and World Bank. "In the coming decade 450 million people are going to enter the labor market so we really face the risk of a lost generation," which threatens the health, education, and social stability of citizens in the long-term.
He called for continued international cooperation and to steer clear of "currencies wars" touched-off by countries like China, Japan, South Korea and Brazil who have devalued currencies in order to maintain competitive export prices.
Using currencies as a tool of economic policy can "lead to very bad situations," Strauss-Kahn cautioned.
China's top central banker on Friday rejected demands for a quick revaluation of its currency, stating the emerging giant would reform gradually rather than engage in "shock therapy".
Facing pressure from the U.S., Europe and Japan, Central bank Governor Zhou Xiaochuan said the yuan would move gradually toward an "equilibrium" level.
The financial sector still faces the lack of oversight that existed when the global economic began in 2007, putting it at risk. According to Strauss-Kahn, he said the new financial system is not safe enough to avoid a crisis as big and as severe as the most recent crisis.
Strauss-Kahn said without greater cooperation the global economy will continue to struggle and job creation will remain weak. He noted that since the recession began in 2007, more than 30 million jobs have been lost around the world.
World Bank President Robert Zoellick, also speaking at the plenary session, said the group of the world's 20 leading economies could help improve global economic coordination.
Since the beginning of the crisis the International Monetary Fund has given USD 223 Billion to members and disposed of USD 72 billion. The World Bank committed USD 113 billion to members and disposed of USD 88 billion; including USD 22 billion to the worlds 79 poorest countries, according to IMF chairman Olusegun Olutoyin Aganga, also at the plenary meeting. "Above all, this has been a human crisis", said Aganga. He urged for more money to "replenish" the World Banks anti-poverty funds in order to achieve Millennium Development Goals by 2015.
"Addressing poverty remains the main challenge for our own development," Aganga said. (end) hy.bs KUNA 082113 Oct 10NNNN