IMF warns that Rising Food & Fuel Prices and Joblessness Could Lead to Social UnrestSubmitted by bobbyw24 on Wed, 02/16/2011 - 07:35
SINGAPORE (Reuters) – The world economy is beset by problems such as high unemployment and rising prices which could fuel trade protectionism and even lead to war within nations, the head of the International Monetary Fund warned on Tuesday.
Rising food and fuel prices in recent months have already hit poorer countries and are one of the factors behind massive anti-government protests in Egypt and in Tunisia, whose president was ousted last month.
"As tensions between countries increase, we could see rising protectionism -- of trade and of finance. And as tensions within countries increase, we could see rising social and political instability within nations - even war," Dominique Strauss-Kahn said in a speech in Singapore.
Strauss-Kahn noted two "dangerous" imbalances that he said could sow the seeds of the next crisis.