Joblessness worldwide to mount
Thursday, 2 April 2009
Fazle Rashid in New York
THERE seems to be no end to the relentless run of bad news particularly for poor countries. International Labour Organisation (ILO) has warned that more than 53 million people worldwide will be thrown out of employment in 2009. It has been followed by a further grim forecast.
Organisation for Economic Cooperation and Development (OECD) says one in 10 workers in advanced economies will be without a job in 2010. The ranks of the unemployed in the 30 advanced OCED countries would swell by 25million people in 2010 by far the largest and most rapid increase in OECD unemployment in the post war (World War II), a reputed paper in a report said the other day.
So by the end of 2010 there will be roughly 60 million people worldwide who will be without a job. OECD countries' economies will contract by 4.3 per cent in 2009 "with little or no growth expected" in 2010, the same paper said.
There will be no job, so there will be no money to remit home. Remittances will fall up to 8.0 per cent worldwide this year according to the World Bank. The remittance is poised to recover in 2010 and 2011 as migrant workers in rich countries could benefit from government's stimulus package.
This projection of course is in odd with governments in rich countries who are in favour of retaining domestic labour force and anxing migrant workers to prevent social convulsion.
Meanwhile, the euphoria and optimism created by the coming G20 summit to be held in London has begun to evaporate. British Prime Minister Gordon Brown, a robust optimist has " scaled back his earlier rhetoric of achieving a global new deal".
There will be a limited agreement on a way out of the recession, analysts are predicting.. London summit will be a part of a process rather than an event, a reputed paper quoted Gordon Brown as saying. President of France still hopes of a " grand declarations" emerging from the summit.
China campaigning hard to end the dominance of US dollar as intervening currency has agreed to a Rmb70 billion currency swap with Argentina that will help it to get renminbi, instead of dollar, for its exports to Latin America. China has signed similar deals with Malaysia, South Korea, Hong Kong, Belarus and Indonesia in an attempt to unlock trade financing that has been severely curtailed as a result of the economic meltdown. World Bank predicts that up to $300 billion will be required to meet shortfall in global trade financing.
Stephen Harper, prime minister of Canada, wants a far more active participation of the emerging economies in revamping the global economy and trade imbalances
Even in the midst of economic turmoil of unprecedented enormity, there is no dearth of scams, scandals and frauds. There have been cost overrun in nearly 70 per cent of the Pentagon's 96 largest weapons programme. The cost overrun is $296 billion than the original estimate, New York Times reported the other day.
The United States spends $21,000 per minute in defence spending. The Defence outlay for 2010 has been estimated at $664 billion. President Obama has said "days of giving defence contractors a blank cheque are over".
Pentagon official conceded management of the contracts remained poor and cost overruns are still staggering. All contracts are behind schedules by 22 months.
THERE seems to be no end to the relentless run of bad news particularly for poor countries. International Labour Organisation (ILO) has warned that more than 53 million people worldwide will be thrown out of employment in 2009. It has been followed by a further grim forecast.
Organisation for Economic Cooperation and Development (OECD) says one in 10 workers in advanced economies will be without a job in 2010. The ranks of the unemployed in the 30 advanced OCED countries would swell by 25million people in 2010 by far the largest and most rapid increase in OECD unemployment in the post war (World War II), a reputed paper in a report said the other day.
So by the end of 2010 there will be roughly 60 million people worldwide who will be without a job. OECD countries' economies will contract by 4.3 per cent in 2009 "with little or no growth expected" in 2010, the same paper said.
There will be no job, so there will be no money to remit home. Remittances will fall up to 8.0 per cent worldwide this year according to the World Bank. The remittance is poised to recover in 2010 and 2011 as migrant workers in rich countries could benefit from government's stimulus package.
This projection of course is in odd with governments in rich countries who are in favour of retaining domestic labour force and anxing migrant workers to prevent social convulsion.
Meanwhile, the euphoria and optimism created by the coming G20 summit to be held in London has begun to evaporate. British Prime Minister Gordon Brown, a robust optimist has " scaled back his earlier rhetoric of achieving a global new deal".
There will be a limited agreement on a way out of the recession, analysts are predicting.. London summit will be a part of a process rather than an event, a reputed paper quoted Gordon Brown as saying. President of France still hopes of a " grand declarations" emerging from the summit.
China campaigning hard to end the dominance of US dollar as intervening currency has agreed to a Rmb70 billion currency swap with Argentina that will help it to get renminbi, instead of dollar, for its exports to Latin America. China has signed similar deals with Malaysia, South Korea, Hong Kong, Belarus and Indonesia in an attempt to unlock trade financing that has been severely curtailed as a result of the economic meltdown. World Bank predicts that up to $300 billion will be required to meet shortfall in global trade financing.
Stephen Harper, prime minister of Canada, wants a far more active participation of the emerging economies in revamping the global economy and trade imbalances
Even in the midst of economic turmoil of unprecedented enormity, there is no dearth of scams, scandals and frauds. There have been cost overrun in nearly 70 per cent of the Pentagon's 96 largest weapons programme. The cost overrun is $296 billion than the original estimate, New York Times reported the other day.
The United States spends $21,000 per minute in defence spending. The Defence outlay for 2010 has been estimated at $664 billion. President Obama has said "days of giving defence contractors a blank cheque are over".
Pentagon official conceded management of the contracts remained poor and cost overruns are still staggering. All contracts are behind schedules by 22 months.