Sept. 6 - World Bank President Robert Zoellick calls on the U.S. to slow down the growth of its debt, and for Asia's developing countries to create investment that would also benefit the West. Toshi Maeda reports.
World Bank President Robert Zoellick called on the United States on Tuesday (September 6) to reign in its burgeoning debt. Speaking at the World Bank-Singapore Finance Summit, Zoellick said the U.S. should address the rate of its debt growth, rather than cutting spending. (SOUNDBITE) (English) WORLD BANK PRESIDENT ROBERT ZOELLICK, SAYING: "People often talk about cuts. It really doesn't have to be cuts, it could be slowing the rate of growth. But I think it would send a very important signal to markets about the U.S. coming to grips with the issue, if it was able to, I happen to believe that social security would be an easier one to take on than the Medicare issues, that it started to address that rate of spending increase." The World Bank president also urged Asia and the West to work together to create wealth, especially in developing nations, known as "South-South Investment." (SOUNDBITE) (English) WORLD BANK PRESIDENT ROBERT ZOELLICK, SAYING: "And the potential, for example, for South-South Investment, is growing enormously. So I see this as an opportunity. I see this as creating the context to be able to shift capital to productive resources to growing economies and in an open economic system, it can benefit everybody." Zoellick was in Beijing last week, where he warned the world economy is stepping into a "new danger zone," as growth slows and investor confidence weakens. Toshi Maeda, Reuters.