In a speech at SAIS Johns Hopkins, Managing Director Christine Lagarde outlined in a frank discussion of the current status of the developed and emerging economies. Baring in mind that we have just come through the worst financial crisis in a century.

Global growth exceeded 3 percent for 2013, with moderately better growth expected for this year and 2015, “although still remaining below past trends.”

The object is to get the economy to a “cruising speed”. But as many of us who travel know that the engines have to be revved up and a fair amount of energy is exerted to reach cruising altitude. Both the G20 and the IMF are asking for increases in spending and investments, effectively adding the energy needed to reach optimal altitude.

The levers, though limited, can be pulled by the pilots, in our case, the central bankers and finance ministers, along with the IMF and World Bank as co-pilots. These include infrastructure spending and labor market reforms.

In a separate press release the IMF referred to roadblocks. The old blocks are long term unemployment, banking and lending reform, health and stress tests for the world’s largest banks and ongoing high debt levels in most countries.

The new roadblocks are risk of low inflation, market reaction the Fed’s tapering of quantitative easing and other printing economies, such as, Japan and geo-political situations, for example Caracas and Ukraine.

“With our global membership, technical expertise, and cross-country experience, the IMF is well placed to help.”, the IMF says these are the types of situations the IMF was designed for. With its 70 year history, methodical, model based and experience to nudge the economy in the right direction.

There are positive signs outlined in the speech and found in the Inequality findings earlier in March. Sub Sahara and parts of South America have seen reductions in inequality disparities. Sub Sahara Africa is growing at approximately 5 percent and is expected to continue. Three quarters of all growth over the past 5 years has come from developing and emerging economies.

G20 News will be covering the Spring Meetings in Washington DC. There will be press briefings almost everyday and opportunities to ask IMF, World Bank staff and ministers questions. I would like to ask you, my readers to submit questions to info@g20news.com We expect to approach leaders and will publish the answers.

– By Julien David

Caracas, G20, Headline, IMF, Lagarde, Ukraine