 Prof Justin Yifu Lin, Prof Hellicy Ngambi, Mr Trevor Manuel & Mr Tim Modise  Prof Hellicy Ngambi thanking Prof Justin Yifu Lin |
The global financial crisis: responses of the World Bank
The College of Economic and Management Sciences, together with the World Bank, hosted a public lecture entitled "Weathering the global economic crises: lessons for emerging markets" on Wednesday 15 July 2009. The lecture attracted some of South Africa's financial gurus, including Trevor Manuel, Minister in The Presidency: National Planning Commission.
According to Prof Mandla Makhanya, Unisa's Pro-Vice-Chancellor, "Globalisation has created a platform whereby we are able to share resources, technologies and opportunities for growth and sustainable development." He added that globalisation has its advantages, but the fact that it does not always contribute to the wellbeing of all role players within society is a daunting task that requires management and the mutual collaboration of all within a globalised society.
Prof Justin Yifu Lin, Chief Economist and Senior Vice-President of the World Bank, delivered the keynote address. He said the current crisis originated in the financial sector, but that the challenge is now in the real sector. "Growth has plummeted and unemployment has risen in developed and developing countries alike." He added that we need to go beyond national boarders so that the global economy can get out of the current crisis and so that we can build a much better foundation for sustainable economic growth in developing countries. Ms Ruth Kagia, Country Director of the World Bank, was one of the guests at the lecture. She said that there is a need for the World Bank to assist by sharing global experiences and information.
When asked why economists had not seen the financial crisis coming, Prof Lin said that it was because financial sector issues had become real sector issues due to excess capacity. He had a word of advice for South Africa in this time of global financial crises, however. "This may be an opportune time to tackle infrastructure and other growth bottlenecks that require significant public expenditure and investments."
He concluded by saying that the World Bank has responded to the crises by offering expanded, innovative products and services to assist emerging economies and developing countries alike.
Prof Hellicy Ngambi, CEMS Executive Dean, expressed her delight at the success of the lecture and thanked Tim Modise for a well-moderated programme.
Click here for Prof Justin Yifu Lin's speech. |
