Federal Treasurer Wayne Swan says the best way to address global economic uncertainty is with conviction and resolve.
Mr Swan on Tuesday met with World Bank President Robert Zoellick in Canberra, ahead of a speech by the treasurer to parliament on the state of the economy.
The treasurer said the World Bank and G20 group of nations had made a difference during the global economic crisis.
"We are now still living with the aftershocks of that global financial crisis and global recession," Mr Swan told reporters.
"And we see the aftershocks ... in the volatile economy we have internationally today."
Clearly, events in the US and events in Europe were producing "great uncertainty and volatility", particularly in international markets.
"The best way we, through the G20 and as individuals, can deal with the situation is with conviction and with resolve," Mr Swan said.
Mr Swan said the issue of climate change risked massive damage to Australia's environment and economies.
"It also means damage to our economy and to jobs," he said.
"And in a country like this damage to our coastal cities and damage to our tourism industry, and of course damage around the world to some of the most vulnerable countries and people on earth."
The Australian government would deal with climate change in a "calm and methodical way".
Mr Swan said a first-grade economy had to be powered by clean energy.
"A clean energy strategy is a growth strategy," he said.
Mr Swan thanked the World Bank for its assistance with the Queensland floods earlier this year.
Mr Zoellick expressed his thanks to Australia for its commitments to help some funds for the 79 poorest nations on the planet through the International Development Association.
"The World Bank, like Australia, shares the view that development dollars have to deliver on the ground," Mr Zoellick said.
The bank looked forward to working with Australia as it moved ahead with its aid program.
"Whether it be in conflict-afflicted countries, promoting the private sector, helping with infrastructure that also creates jobs in both the developed and developing worlds."
The president of the Washington-based organisation said the current economic malaise had created tough conditions for the world economy.
"There is no doubt that these are some difficult and dangerous times," Mr Zoellick said.
"Some of the woes over debt in the United States and the eurozone trauma have unleashed a wave of uncertainty about the global economy."
Mr Zoellick said the global economy had moved in recent weeks into a "danger zone".
"It is in part the convergence of some of the events coming out of the Eurozone where - while political efforts I know are significant because you still have separate countries making decisions - they've not really got ahead of the problem and haven't been able to deal with some of the fundamentals and structural issues," he said.
"That, combined with some of the uncertainty created in the discussions in the US .... I think frankly created a real shift of confidence in markets.
"What will now be important to watch is whether that hit to confidence also extends to consumers and businesses and also how governments respond."
Mr Zoellick said he was pleased to see the European central bank "trying to put liquidity in".
"But part of my message is the efforts that central banks can do are still in some ways short term - you have to get to the fundamentals."
He complimented the Australian, Singaporean and Canadian governments for "taking some steps forward on economic leadership".
Mr Zoellick said he did not expect to see GFC-style stimulus programs.
China's efforts in tackling its inflation rate was leading to "some stability in the international system", he said.
Asked about the European economy, Mr Zoellick said the whole world would be affected by the way the situation was handled.
"It's important for both Europeans, and those in the US, to understand others have a stake in this game," he said.
"And that while these are European decisions for Europe, that we're part of an international economy and we all have a lot at stake."
Mr Zoellick said the International Monetary Fund (IMF) could play a key role in helping Europe and he planned to discuss the matter with IMF managing director Christine Lagarde.
"My key message is that the process of providing liquidity, the process of kind of hoping that global growth will get everybody out of this, I think those prospects have run their course and that's what markets are communicating," he said.
"I think the IMF can play a key role in helping that."
