Important words from IMF directer Christine Lagarde quoted in this article in the Guardian:
"I believe that if we continue to act, 2013 will be a defining year in terms of finally getting beyond the crisis," the IMF managing director said. "But more than that, I believe we are standing in the antechamber of a new global economy, marked by rapidly shifting circumstances and new modes of thinking."
Lagarde was speaking hours after the IMF trimmed its growth forecast for the world economy in 2013, noting that the upturn was now expected to be more gradual than expected three months ago.
"We have avoided the collapse, let's beware of relapse, it's no time to relax," Lagarde said. "2013 will be a make-or-break year." The new global economy would be built on the principles of openness, inclusiveness and accountability.
Lagarde warned of the risks of climate change and of backsliding on necessary reforms of the financial sector, and admitted that policymakers – including the IMF – had underestimated the costs of inequality. Unless action was taken to combat global warming, the next generation would be "roasted, toasted, fried and grilled".
One new principle that still needs to be articulated is that "growth" is not always good. Growth leads to global warming and other evils. We need alternatives to "growth" as it is conceived by the economic powers.