Davos: Sixteen months after Lehman Brothers collapsed, there is still uncertainty on the pace and nature of the recovery. NDTV brings you this report from Davos on what lies ahead for the global economy:
As the world crawls out of recession, leaders and economists from various countries spent the last few days in Davos debating the state of the economy. The consensus: growth has come faster than expected, but it's still fragile.
There are some like Nobel Prize winning economist Joseph Stiglitz who believe we could head for a double-dip downturn and another round of stimulus may be needed.
"A lot of pressure you can feel here at Davos concerns financial deficit and urging governments to cut back. If they do that prematurely, there is a likelihood of a double dip downturn. I have been calling for a second round of stimulus. It is clear that the first round isn't sufficient," Joseph Stiglitiz, a professor at University of Columbia.
There's also growing need for fixing responsibility on those who caused the crisis, that's why government officials and regulators from several nations met behind closed doors here in Davos to discuss regulation.
But Obama's recent crackdown on the banking system has also had its share of criticism.
"I think he is putting the pressure in the wrong place. Banks are not cause of the problem, bad government policy is," says Robert Forbes, VP, Forbes.
But it's clear that Asia has recovered swiftly with economies like India and China leading the world out of the global recession.
Story first published:
January 31, 2010 07:17 IST