The International Monetary Fund says “dangerous” imbalances have emerged which threaten to derail the global recovery and spark civil wars, The Telegraph reports.
The IMF has published a paper arguing that the extreme gap between rich and poor was an underlying cause of the recession. It warns of “disastrous consequences” for the world economy unless workers regain their “bargaining power”.
IMF chief executive Dominique Strauss-Kahn says: “It is not the recovery we wanted. Its is a recovery beset by tensions and strain, which could even sow the seeds of the next crisis.
“Global unemployment remains at record highs, with widening income inequality adding to social strains.”