World economy can brave slump

ACCRA – The effects of a global markets sell-off in recent days could be shortlived and the world economy has shown it has the resilience to deal with much bigger upsets, World Bank President Paul Wolfowitz said on Monday.

“I wouldn’t say that because of what we have seen in the last five days, we know where we are going to be five weeks from now,” Wolfowitz told a news conference. “The global economy has shown a surprising resilience to much bigger perturbations.”Wolfowitz was in Accra as part of celebrations to mark the 50th anniversary of independence for Ghana, the first country in sub-Saharan Africa to shed the colonial yoke.Asked about the possible impact of the market shake-up on emerging economies, the former US deputy defence secretary replied: “We are in a period of strong economic growth, that is good for everybody.””The best thing that Ghana or any developing country can do to insulate itself …is to continue practising sound economic policies, including those that help grow domestic markets.”After a chequered history since independence on March 6, 1957, punctuated by a spate of military coups, Ghana has emerged as one of Africa’s most respected democracies and more solid economies.The world’s No.2 cocoa producer and Africa’s second biggest gold producer, Ghana has plans to step up its activities on bond markets this year, encouraged by debt reduction initiatives and an improving economic performance.Wolfowitz struck a note of caution, however, saying it was better for Ghana to borrow from donors than in commercial markets.”The last thing anyone wants is to see them return to levels of debt that are not sustainable,” he said.”The best solution is for donors to come up with more resources.We are definitely looking within World Bank to scale up resources.”The World Bank chief also expressed hope that recent global market volatility would not sap the aid available for Africa.”The resources are big for Africa …but it is relatively small compared to the overall GDP of rich countries.I think they can afford it and I hope they will.”Nampa-Reuters”The global economy has shown a surprising resilience to much bigger perturbations.”Wolfowitz was in Accra as part of celebrations to mark the 50th anniversary of independence for Ghana, the first country in sub-Saharan Africa to shed the colonial yoke.Asked about the possible impact of the market shake-up on emerging economies, the former US deputy defence secretary replied: “We are in a period of strong economic growth, that is good for everybody.””The best thing that Ghana or any developing country can do to insulate itself …is to continue practising sound economic policies, including those that help grow domestic markets.”After a chequered history since independence on March 6, 1957, punctuated by a spate of military coups, Ghana has emerged as one of Africa’s most respected democracies and more solid economies.The world’s No.2 cocoa producer and Africa’s second biggest gold producer, Ghana has plans to step up its activities on bond markets this year, encouraged by debt reduction initiatives and an improving economic performance.Wolfowitz struck a note of caution, however, saying it was better for Ghana to borrow from donors than in commercial markets.”The last thing anyone wants is to see them return to levels of debt that are not sustainable,” he said.”The best solution is for donors to come up with more resources.We are definitely looking within World Bank to scale up resources.”The World Bank chief also expressed hope that recent global market volatility would not sap the aid available for Africa.”The resources are big for Africa …but it is relatively small compared to the overall GDP of rich countries.I think they can afford it and I hope they will.”Nampa-Reuters