It’s no secret that the world economy is a bit unstable. All the bailouts have failed to make it any more stable, in fact, they have made it more unstable. So much so that the World Bank’s president, Robert Zoellick, is warning about another “severe economic crisis.” He talks about the food crisis, energy and the African revolutions. But, he doesn’t really have a plan to stop it.
One would think that the head of such an institution would know what to do about such bad economic conditions. But, isn’t this the bank, along with the International Monetary Fund, which put the third world nations in massive debt? They loaned money to these countries, told them where to spend it, imposed austerity conditions to pay it back. The countries were further in debt, poorer, and unstable.
That certainly didn’t help the global economic crisis. Having most of the world, poor, hungry, debt ridden and stuck on a dollar economy, to me, is a big piece of the problem. The Bretton Woods system which had prevented these major crisis needs to be revived. It’s not rocket science: do what worked in the past.