Developing countries could suffer serious consequences of financial
crisis: World Bank, IMF
US: The World Bank and the International Monetary Fund (IMF) warned
on Sunday that developing countries could suffer serious consequences of
financial crisis.
“Developing and transition countries (DTCs) could suffer serious
consequences from any prolonged tightening of credit or sustained global
slowdown,” said a communique released after the meeting of the
Development Committee of the Bank and the IMF.
“We are concerned by the impact of the turmoil in world financial
markets and the continued high prices of fuel and food,” said the
communique.
“We welcomed member countries’ commitment to take comprehensive and
cooperative measures to restore financial stability and the orderly
functioning of credit markets.”
The World Bank Group (WBG) and the IMF must help address these
critical challenges, in particular the impact on developing countries,
and draw lessons from the current crises, said the communique.
“It will be crucial to maintain a focus on support for sustainable
growth, poverty reduction, and the achievement of the Millennium
Development Goals (MDGs),” it added.
World Bank President Robert Zoellick said after the meeting that the
World Bank will help developing countries strengthen their economies,
bolster their financial systems and protect the poor against the
financial turmoil in international markets.
“Developing countries, many of them already hit hard by high prices
for energy and essential foodstuffs, risk very serious setbacks to their
efforts to improve the lives of their populations from any prolonged
tightening of credit or a sustained global slowdown,” Zoellick told a
press conference.
“The poorest and most vulnerable groups risk the most serious and in
some cases permanent damage. 100 million people have already been driven
into poverty this year and that number will grow,” he warned.
The World Bank has recently announced 1.2 billion U.S. dollar rapid
financing facility is providing immediate help for countries coping with
the impact of high food prices on the poor and already has 850 million
dollars approved or in the pipeline, said the World Bank chief.
“We urge countries to consider making contributions to this fund.
Australia has recently contributed 50 million Australian dollars, but we
need more,” he said.
IMF Managing Director Dominique Strauss-Kahn also told the news
conference that the world should not forget the other crisis, referring
to the crisis of rising food and energy prices in poor countries.
Strauss-Kahn hailed the eurozone’s action plan to cope with the
financial crisis.
He also urged the U.S. government to implement a 700 billion dollar
bailout plan immediately to stabilize the financial markets. Washington,
Monday, Xinhua |