WASHINGTON, March 12 (Xinhua) -- The world needs to refocus on growth and rethink models of growth after the recession, said Nemat Shafix, deputy managing director of the International Monetary Fund (IMF), on Monday.
"Everybody thought we would have economic recovery in 2010, but we were wrong. So the IMF has found itself focusing still on macroeconomic stabilization issues, particularly in Europe, but also elsewhere," Shafix told an audience in a book event, which focused on ways to achieve growth after the recession of 2007-2009.
Shafix said focusing on growth and its sources is "the only way" out of recession, but things need to be done differently to avoid mistakes made in the past.
Shafix said "inclusive growth" is a phrase widely used, but it is not easy for countries to "maneuver between the conflicting pressures" caused by growing social protection demand, a higher unemployment rate, and rising income inequality.
"Economic growth would be much harder to generate" in this economic environment, said Danny Leipziger, professor of international business of George Washington University and co-editor of the book named "Ascent after decline" which was introduced in the event.
Leipziger said certain factors, including higher debt, joblessness and sluggish investment, would make it more difficult for the world economy to get close to its growth path. He noted that countries should have "strategic view" about where to generate jobs and what industries they can get comparative advantages.
Another co-editor of the book, Otaviano Canuto, argued that although negative factors would drag down the economic growth to "not favorable trajectory," but with support of autonomous actions, developing countries could still grow at substantial paces.
Canuto is vice president and head of Network, Poverty Reduction and Economic Management of the World Bank.
