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War within nations possible if joblessness continues

Published: February 2, 2011
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Source: ANN

The head of the International Monetary Fund has warned the weakened world economy could bring war to some countries.

With the world economy beset by problems, Dominique Strauss-Kahn has spoken in Singapore on the possibility of trade protectionism and war within nations.

He said that rising food and fuel prices in recent months had already hit poorer countries and had already led to the massive anti-government protests in Egypt and in Tunisia.

Rising social and political instability within nations had become a distinct possibility he said with “dangerous” imbalances likely to sow the seeds of the next crisis.

Unbalanced recovery across countries and social strains within countries with high unemployment and widening income gaps were proving a great challenge to governments, he said.

He told his audience: “We face the prospect of a lost generation of young people, destined to suffer their whole lives from worse unemployment and social conditions. Creating jobs must be a top priority not only in the advanced economies, but also in many poorer countries.”



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