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Washington - World Bank president Robert Zoellick said Thursday that advanced countries needed to act quickly to resolve their crises before they ravage the rest of the global economy.
"Europe, Japan, and the United States must act to address their big economic problems before they become bigger problems for the rest of the world," he said at the opening of the World Bank-International Monetary Fund annual meetings.
"Not to do so is irresponsible," he added.
"Some developed country officials sound like their woes are just their business. Not so," Zoellick said as he warned poorer countries of the fallout that could come from the advanced economy crises.
He said he still believed that a return to recession in the US, Europe and Japan is "unlikely."
"But my confidence in that belief is being eroded daily by the steady drip of dificult economic news."
"The world is in a danger zone," Zoellick said.
"In 2008 many people said they did not see the turbulence coming. Leaders have no such excuse now."
Meanwhile IMF chief Christine Lagarde said that advanced countries needed to prioritise balancing their budgets, but added that the United States, at least, should not do so at a cost to economic growth.
With debt burdens extremely high and rising in many advanced countries, fiscal consolidation "is a matter of priority," she said.
However, she added, "consolidating too fast, too heavy for some countries, is going to be harmful for potential growth."
"Some countries can accommodate growth in the short term ... clearly, the United States is on that comes to mind right away."
"It's a balancing act," she added.
The IMF managing director stressed a need for Europe's banks to strengthen their capital bases so they are in a position to power growth.
"It is critical that to fuel growth, banks be in a position to finance the economy."
Lagarde also urged emerging economies to make their own contribution to strengthening the global economy through "rebalancing" - moving their cash-rich economies more toward growth based on domestic consumption and, for those with strong trade and investment surpluses, giving more room to deficit countries.
"That is not moving fast enough in the emerging markets," she said.
"Europe, Japan, and the United States must act to address their big economic problems before they become bigger problems for the rest of the world," he said at the opening of the World Bank-International Monetary Fund annual meetings.
"Not to do so is irresponsible," he added.
"Some developed country officials sound like their woes are just their business. Not so," Zoellick said as he warned poorer countries of the fallout that could come from the advanced economy crises.
He said he still believed that a return to recession in the US, Europe and Japan is "unlikely."
"But my confidence in that belief is being eroded daily by the steady drip of dificult economic news."
"The world is in a danger zone," Zoellick said.
"In 2008 many people said they did not see the turbulence coming. Leaders have no such excuse now."
Meanwhile IMF chief Christine Lagarde said that advanced countries needed to prioritise balancing their budgets, but added that the United States, at least, should not do so at a cost to economic growth.
With debt burdens extremely high and rising in many advanced countries, fiscal consolidation "is a matter of priority," she said.
However, she added, "consolidating too fast, too heavy for some countries, is going to be harmful for potential growth."
"Some countries can accommodate growth in the short term ... clearly, the United States is on that comes to mind right away."
"It's a balancing act," she added.
The IMF managing director stressed a need for Europe's banks to strengthen their capital bases so they are in a position to power growth.
"It is critical that to fuel growth, banks be in a position to finance the economy."
Lagarde also urged emerging economies to make their own contribution to strengthening the global economy through "rebalancing" - moving their cash-rich economies more toward growth based on domestic consumption and, for those with strong trade and investment surpluses, giving more room to deficit countries.
"That is not moving fast enough in the emerging markets," she said.
