By Max Clarke
The global economic “recovery is getting stronger”, said managing director at the IMF (international monetary fund) at an open press conference, “but it is not the recovery we want.”
The recovery remains imbalanced both between and within countries, feeding uncertainty, as countries continue to face significant challenges to their economic path.
Developed states are faced with high unemployment whilst emerging markets risk ‘overheating’ due to unchecked growth; and for low income countries, rising food and fuel prices are undermining stability and posing serious barriers to growth.
The crisis of youth unemployment, currently at 20% in the UK and up to 25% in the North East, risks fuelling civil unrest, and not just for the UK, as Dr. Strauss-Khan comments:
“there will be a lot of challenges to deal with, especially because of youth unemployment. And for the young what was seen at the beginning as just a transitory period, meaning that it will take some time for them to reach the labor market and to be able to find a job, there is now risk that this will be turned into a life sentence, and the possibility of a lost generation that I already mentioned a month ago could materialize. There is a real threat there, and we cannot go on thinking that we're not concerned about these distribution issues.
Strauss Khan went on to point out the severity of the threat that youth unemployment and social inequality can pose, citing the revolutionary protests that racked through Egypt and Tunisia. Although these countries had been performing as a whole, with strong macroeconomic performance, the recovery was not felt in much of the population who continued to be faced with rising costs to fuel and food as well as widespread unemployment.