Japan is hosting annual meetings of the International Monetary Fund and the World Bank this week, with some 20,000 people from 188 countries taking part. The meetings are taking place at a time when the European sovereign debt problems, uncertainty about the U.S. economy and slowing down of the Chinese and other emerging and developing economies are casting clouds over the global economy. It is hoped that the meetings will serve as an opportunity for the participating countries to deepen their cooperation to prevent a recurrence of a financial calamity like the Lehman Brothers shock of 2008, which triggered a global economic crisis.

The world economy has been struggling to put itself on a path of strong recovery since the Lehman Brothers shock. The effects of the European sovereign debt crisis, which started with the government change in Greece in October 2009, are continuing. Despite strong support measures for European countries suffering from sovereign debt problems, prospects for the settlement of the European crisis remain unclear.

The IMF and World Bank meetings will offer financial ministers and central bankers from various countries a chance to discuss subsequent steps to resolve the crisis in Europe, which is having a negative impact on other economies. Important themes at the meetings will include how to attain sustainable economic growth as the world economy grapples with the impact of globalization and how to resolve the conflict between the need to reduce government debt while ensuring the well-being of the people.