LONDON (Reuters) - The world’s biggest economies should set an agenda for “responsible globalization” linking balanced growth and financial stability with development and climate change at this week’s G20 meeting, the head of the World Bank told the Financial Times.
U.S. President Barack Obama said on Sunday he would push leaders at the Group of 20 meeting on September 24-25 to reshape the global economy after the financial crisis, while European officials pressed for a deal to curb bankers’ pay at the summit in the former U.S. steelmaking center of Pittsburgh.
“The challenge for the G20 is how do you sustain the momentum and co-operation they were able to achieve when staring into the abyss at the time of the London summit as the crisis wanes?” Robert Zoellick, president of the World Bank, told the Financial Times in an interview published on Monday.
“I would like the G20 to talk about responsible globalization. That would capture balanced global growth, financial stability, climate change, help for the poorest including our proposal for a new facility to help countries cope with economic shocks not of their own making.”
The development bank head told the British business daily the rest of 2009 could exceed many economic expectations but warned of possible further economic gloom next year.
“I am more concerned about 2010. I am not forecasting a double dip, but we are not out of the woods yet,” he said, adding that it was unclear whether private demand would be strong enough to make up for fading fiscal stimulus in 2010.
“We could help provide new sources . . . by ensuring access to finance for some of the well-run middle income countries that have room to borrow more,” he said.
Reporting by Daniel Fineren; Editing by Marguerita Choy