DUBAI - IMF chief Christine Lagarde Sunday gave a clarion call for countries to create the required environment for job creation, warning that unemployment can trigger dangers of youth radicalisation and deeper poverty.

Asserting that memories of the 2008 financial crisis are "still alive and not gone away", Lagarde, the managing director of the International Monetary Fund (IMF), underlined the need to learn lessons from the recent global shift towards protectionism.

"Memories of the 2008 financial crisis are still alive and not gone away," she said, adding that a focus on resilience, which includes economic diversification, is key for governments to prepare themselves in these uncertain times.

She said that it should also be ensured that the global community makes efforts to prevent a crisis before it hits them rather than being ill prepared and work for a resolution when it comes.

Touching on other issues, Lagarde said.

The managing director of the International Monetary Fund said that sharp swings in global financial markets in the past few days are not worrying since economic growth is strong but reforms are still needed to avert future crises.

Christine Lagarde, speaking at a conference on global business and social trends in Dubai, said economies were also supported by plenty of financing available.

“I‘m reasonably optimistic because of the landscape we have at the moment. But we cannot sit back and wait for growth to continue as normal,” she said in her first public comments on market movements since the latest round of turmoil at the end of last week.

“I‘m ringing not the alarm signal, but the strong encouragement and warning signal.”

Global stock markets were hit by wild fluctuations, with the U.S. benchmark S&P 500 tumbling 5.2 percent last week, its biggest weekly percentage drop since January 2016. The volatility was fuelled by investor worries about rising interest rates and potential inflation.

Lagarde repeated an IMF forecast, originally issued last month, that the global economy would growth 3.9 percent this year and at the same pace in 2019, which she said was a good backdrop for needed reforms.

She did not give details of the reforms she wanted to see beyond saying authorities needed to move to regulation of activities, not entities.

“We need to anticipate where the next crisis will be. Will it be shadow banking? Will it be cryptocurrencies?” she said.

"There has been quite a bit of market volatility from one day to the other, particularly led by the U.S.," she said. "But if you compare market valuations from a week ago, there's been a market correction of anywhere between 6 to 9 percent. Which frankly, given where asset prices were — very high — it's in our view a welcome correction."

The S&P 500 officially fell into correction territory on Thursday, down more than 10 percent from its January peak. Financial analysts have long warned that the rocketing bull market of the past year would at some point come to a screeching correction thanks to its highly overvalued stock prices — and it appears last week was the first sign of that, though experts are divided over whether the market has bottomed out or if it has further to go.

But the IMF chief echoed the sentiment of many other bank bosses and investors toward the week's developments, who noted that fundamentals like global GDP growth rates and company earnings were still strong, so this would not fundamentally affect the real economy or countries' abilities to continue growing.

"We've observed that despite the volatility, the market channels and pipes and mechanisms have worked well, and we also see that the financing is still plenty and very much available for the financing of the economy," Lagarde said.

"So corrections happen, they were due to happen, and that's where we see it."