World Bank warns of looming 'social crisis'

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(Press TV) -- World Bank President Robert Zoellick warns that the worsening global economic meltdown and rising unemployment could lead to a 'social crisis'.

"If we don't take measures there is a risk of a great human and social crisis, with major political implications," Robert Zoellick said in an interview with Spanish newspaper El Pais.

He warned that the recovery of the global economy will be slow as an extra 53 million people are on the verge of extreme poverty.

The comment came as crisis-hit eastern European states faces the 'tricky situation' of exacerbating economies and social protests.

'Populist and protectionist policies' are another threat to the economy in the face of 'low or negative growth', he added.

"But economists and industrialists are conscious that the recovery will be slow coming and weaker than expected," he warned.

Although the US financial system is at danger, Latin America has remained reasonably stable, Zoellick said.

"The USA has taken steps in the right direction, but there are still banks with serious difficulties related to consumer finance, credit cards and real estate… the US depends more than Europe on the mortgage securitization market, and that market has yet to recover," he said.