World Bank’s head has talks with P.M.

Press, 4 May 1984, Page 4

World Bank’s head has talks with P.M.

Parliamentary reporter Doubts about the strength of a world economic recovery were no reason to not make essential economic adjustments, said the managing director of the World Bank, Mr Tom Clausen, in Wellington yesterday. Mr Clausen is in New Zealand for talks with the Prime Minister, Sir Robert Muldoon. Yesterday they spent some time discussing efforts to solve the debt crisis facing several developing countries. Mr Clausen said that the economic outlook for 1984 was better than 1983 for developing countries, particularly in Asia, which would have the strongest performance in increasing the gross national product of any group of countries in the world.

He said that 1985 would

be better than 1984 perhaps not as strong, though, in a percentage increase. Movements in this direction would help countries make the adjustments that they must make, he said. “Just because the crystal ball gets cloudy out there longer than a week from Sunday does not mean we should stop making the adjustments,” Mr Clausen said.

“The way we dig ourselves out of the debt hole is not going to be quick.” He said the debt problem would be with the world for the remainder of the decade.

“Hopefully, we will have sustainable recovery on the long haul, and, if that bears up, we are better off, rather than a roller-coaster, which we have been experiencing over recent times,” he said.