World economic leaders call for action against slowing growth

A group of economic leaders from across the world, including chiefs of the IMF and the World Bank, on Friday called for immediate steps to safeguard the global economy from challenges like decelerating growth, high unemployment and protectionist government policies.

The group has also called for the need to support the "economic transformation under way in the emerging world" to help revive the global growth momentum, but stopped short of naming any emerging economies.

India and China are among the major economies that have managed to retain a decent growth momentum despite global upheavals in the world.

As per a 'Call for Action' report published by Geneva-based World Economic Forum (WEF) ahead of its annual summit in Davos, Switzerland, next week, "The world faces significant and urgent challenges that weigh heavily on prospects for future growth and on the cohesion of our societies."

The call to tackle these challenges has been made by the 11-member Global Issues Group (GIG) of the WEF, which comprises of IMF Chief Christine Lagarde, World Bank President Robert Zoellick, WTO Director-General Pascal Lamy, OECD Secretary- General Angel Gurria, among others.

The WEF, however, said that the ideas expressed by the GIG members reflect their individual views, not necessarily those of their respective institutions.

The group said that its "shared objective is the strengthening of growth, employment and the quality of life in every part of the world.

Among the major challenges for 2012, the report listed out issues like decelerating global growth and rising uncertainty, high unemployment and potential protectionist policies of different countries.

"While the global economy faces severe challenges, it can regain momentum by supporting the economic transformation underway in the emerging world by meeting the infrastructure needs around the globe and by beginning to realize the promise of a greener economy," the report said.

For reviving the global growth momentum, the group suggested measures like an open trading system, resilient cross-border finance, sustainable government finances, coordinated structural reforms and steps to address inequalities in all countries.

It also said that the countries must implement their promised reforms and global cooperation needed to be renewed.

"We call on leaders to devote the necessary political energy to deliver concrete actions to exit the crisis and boost growth.

"Every country, working through its regional economic organizations and development banks and through the international financial and UN institutions, has a role to play," it said.