DAVOS: IMF chief Christine Lagarde called Friday on Japan and the United States to set debt reduction targets as their contribution towards lifting the world out of the economic crisis.
"Everybody needs to do something, it needs to be collective," the International Monetary Fund chief told the World Economic Forum.
While eurozone states have to make a special effort as Europe is the epicentre of the current crisis, the United States and Japan "have to do something as well."
"They have to really demonstrate that they have a medium-term objective which is to reduce their debt, to reduce their deficit and to run their public affairs on a much more balanced and sustainable basis," she said.
US government debt now stands at just over $15 trillion but is expected to rise to over $16 trillion by year-end. Japan's total public debt is estimated at 1,024 trillion yen ($13 trillion)
Beyond the industrialised world, Lagarde also urged emerging giants to pitch in to combat the crisis by stimulating domestic demand.
"China and any country that has a surplus must help its domestic market consume a bit more, a bit better and not to rely too extensively on exports," she said, echoing EU and US calls for more Chinese spending.
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