World finance ministers pledged to boost growth on Saturday at IMF and World Bank Spring Meetings tainted by lingering worries about the dragging global economy and hints of discord.
Pounding home the message that each country needs to take action to ramp up growth, and following another week of relative calm in financial markets, the IMF leadership said they were "positive" about the outlook, even as they warned of high risks.
Yet with a rising number of developing countries approaching the two powerful institutions for support to deal with the plunge in commodity markets and tighter credit, there was no clear response to calls to organize an international backup plan if growth begins to stall again.
"The IMF is alert but not alarmed," said Agustin Carstens, chairman of the IMF's steering committee, as the meetings wound up in Washington.
Fund members had agreed on the need to quickly take "mutually reinforcing" actions to support global growth, he added.
The IMF began the week announcing it had slashed its outlook for global growth this year to a low 3.2 percent.
It warned that refugee flows, more volatility in financial markets, a surge in corporate defaults and "Brexit" -- Britain's threatened pullout from the European Union -- were all serious threats to the precarious global economy.
But after dozens of meetings with Fund members large and small, IMF Managing Director Christine Lagarde was more optimistic at the close.
She characterized the week as "a bit of collective therapy, to move from the negative situation that we are facing, and the challenges on the horizon, to a positive approach in order to identify the solutions."
"You don't make any progress unless you have a positive attitude," she quipped.
At the same time, she added, "Clearly the question is, how much is going to get done?"
Vague commitments
The commitments of each country to the lender's "three-pronged approach" to firing up growth remained vague -- another sign of concern for experts.
The Fund has called for countries to act with monetary policy, fiscal spending and structural reform to boost economic activity.
But with a number of top central banks having already taken their interest rates negative and others at ultra-low level, many fear the further impact of monetary policy is limited.
And many countries lack the surplus financial resources to increase spending to spur growth.
The United States, enjoying the strongest growth of any of the top developed countries, and pressured to spend more on things like infrastructure, said it was already doing its part.
"The United States cannot and must not be the only engine of growth, nor the importer of first and last resort for the global economy," said US Treasury Secretary Jacob Lew, his words hinting at looming discord should the rest not pull their weight.
"All major economies need to deploy a full toolkit of economic policy measures."
Germany, another of the countries pressed most to deploy its surpluses to spur growth, says the answer is for others to reform their economies.
"Repeated downward revisions of global growth over the last years highlight that structural factors are at play," said German Finance Minister Wolfgang Schaeuble in a policy statement to the IMF.
"Monetary policy is no substitute for sound and sustainable fiscal policy and structural reforms." Moreover, he continued, "The limitations and negative side-effects of expansionary macroeconomic policies become more visible the longer they are applied."
Financial safety net?
That did not appear to assuage weaker countries. As Carstens pointed out, emerging economies are exposed to tightening financial conditions, pressure on their currencies and not a lot of fiscal or monetary room to move.
The IMF has announced possible bailout programs for several countries in recent weeks -- Angola, Tunisia, and Surinam the most recent -- and more are expected to come.
World Bank President Jim Yong Kim said that the Bank is fielding a surge of requests for help at levels only seen before during financial crises, underlining the fears of many.
Calls by some for the World Bank and IMF to organize a contingency plan, including larger emergency financial resources in case the world moves into recession, were not answered.
"We also need external support and we need a global financial safety net. We need to have access to resources that need to be available," said Mauricio Cardenas, Colombia's finance minister, speaking on behalf of the G24 group of emerging economies.
AFP
Sun Apr 17 2016
But after dozens of meetings with Fund members large and small, IMF's Lagarde (pic) was more optimistic at the close. - File Photo
Freedom Flotilla to Gaza: Misi sekali lagi ditangguhkan, dijangka berlepas pada Jumaat
Ketika ini lokasi kapal memulakan pelayaran akan ditukarkan ke satu lokasi yang akan diumumkan dalam masa terdekat.
Pihak produksi masih terima Naim Daniel jika ubah fikiran
Ketua saluran Astro Ria, Norzeha Mohd Salleh memberitahu bahawa pihak produksi masih lagi memberi ruang kepada penyanyi tersebut untuk mempertimbangkan semula tawaran yang diberikan.
The Hardest Singing Show cabar kreativiti penyanyi tempatan
Program The Hardest Singing Show mencari satu juara yang mampu menyahut cabaran kreativiti luar limitasi.
Pekerja Ahli Parlimen EU disyaki jadi pengintip China
Polis Jerman telah menahan seorang pekerja ahli politik Parlimen Eropah Alternative for Germany (AfD) kerana disyaki menjadi pengintip China.
Amaran ribut hujan tahap tertinggi dikeluarkan di Guangdong, selatan China
Lebih 100,000 orang sudah dipindahkan akibat hujan lebat dan banjir yang boleh membawa maut di selatan China.
Jokowi dan anaknya bukan lagi ahli PDIP
Presiden Indonesia Joko Widodo atau Jokowi dan anaknya, bakal naib presiden Gibran Rakabuming Raka, bukan lagi ahli parti terbesar negara itu selepas mereka menyokong calon pesaing yang juga pemenang pilihan raya Prabowo Subianto.
Lima migran maut ketika cuba memasuki Perancis
Lima termasuk seorang kanak-kanak, maut dalam cubaan menyeberangi Selat Inggeris dari Perancis pada Selasa.
Polis New York lakukan penahanan himpunan lewat malam
Polis New York bertindak melakukan penahanan membabitkan peserta yang terlibat dalam himpunan solidariti terhadap Palestin di Universiti New York (NYU) pada lewat malam Isnin. Penahanan itu dibuat selepas mereka didakwa mengingkari arahan amaran pihak universiti untuk bersurai dan mengosongkan plaza yang menjadi tempat mereka berkumpul.
Break The Siege: Ada kemungkinan lokasi pelepasan kapal ditukar
Jawatankuasa Pemandu Freedom Flotilla Coalition (FFC), Kamarul Zaman Shaharul Anwar memaklumkan, wujud kemungkinan lokasi pelabuhan bagi pelepasan kapal yang terlibat dalam misi Break the Siege of Gaza Freedom Flotilla ditukar.
Benarkan syarikat milik bukan Islam cetak Al-Quran, pengarah syarikat didenda
Seorang pengarah syarikat percetakan dijatuhi hukuman denda RM8,000 atau penjara lima bulan oleh Mahkamah Majistret Petaling Jaya pada Selasa selepas mengaku salah tidak mematuhi syarat-syarat lesen untuk mencetak atau menerbitkan Teks al-Quran, bulan lepas.