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Monday, 27 April 2009 - IMF, World Bank focus on aid for poor countries
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    Read more with google mobile : IMF, World Bank focus on aid for poor countries

    Yahoo! My Yahoo! Mail Yahoo! Search Search: Sign InNew User? Sign Up News Home - Help Navigation Primary Navigation Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Secondary Navigation Search Search: IMF, World Bank focus on aid for poor countries AFP - Monday, April 27 WASHINGTON (AFP) - - The International Monetary Fund and World Bank met Sunday, focusing on aid to developing countries battered by the global financial crisis that is pushing millions more into poverty. ADVERTISEMENT Topping the agenda of a meeting of the joint IMF-World Bank development committee was the fallout from the crisis that began in the advanced economies but which is now hitting the most vulnerable countries. The crisis means up to 90 million more people will remain trapped in extreme poverty this year while the chronically hungry could top one billion, a World Bank/IMF report warned on Friday. African countries are among the most vulnerable to the crisis which has slashed investment and credit flows, jeopardizing development gains, especially on poverty reduction. The International Monetary Fund forecasts growth in Africa to decline to 2.00 percent in 2009 from 5.25 percent in 2008 as exports slump and investment flows shrink. African governments must "contain the adverse impact of the crisis on economic growth and poverty, while preserving the hard-won gains of recent years, including macroeconomic stability and debt sustainability," it said. The head of the African Development Bank, Donald Kaberuka, warned on Sunday that Africa was hit more quickly than expected by the crisis and, just as bad, would pick up more slowly when recovery eventually comes. Most expected the crisis to hit after about 18 months because Africa was not tightly integrated into the global financial system but instead it had had an immediate impact on investment while "credit flows had almost dried up." "My concern (is that) once recovery sets in ... African countries will recover much more slowly," Kaberuka said. On Saturday, the World Bank launched a 55-billion-dollar infrastructure investment program designed specifically to help developing countries weather the worst global slump in decades. "As developing countries are facing the trials of the global economic crisis, it is vitally important that economic stimulus packages in the developed world are accompanied by support to those that cannot afford multi-billion (dollar) bailouts," World Bank president Robet Zoellick said. "A decline in infrastructure leaves weaker foundations for long-term economic growth that hits the poorest the hardest," Zoellick added. "A top priority must also be support for the poorest countries," US Treasury Secretary Timothy Geithner told the IMF/World Bank Development Committee on Sunday. He said Washington was "on track" to meet a pledge to double development aid to Sub-Saharan Africa by next year and would increase other help "to vulnerable populations ... so that we can give people the tools they need to lift themselves out of poverty." Reforms to give the developing world a greater voice and participation in the 185-nation IMF and World Bank, traditionally dominated by the United States and other major advanced economies, were also on the agenda. The meeting comes on the second and final day of the spring meetings of the IMF and its sister institution the World Bank, held under tight security at their headquarters just blocks from the White House in Washington. On Saturday, the IMF, which underpins global financial stability, said it was time to talk about exit strategies for the crisis since all members now agreed on the need for stimulus measures and cleaning up banks' bad assets. IMF head Dominique Strauss-Kahn said now the debate had to be about how to prepare for the eventual economic upturn. Some wanted to discuss the issue later but "our point of view is that (the) exit strategy view has to be taken into account as soon as possible," he said. The IMF earlier this week sharply downgraded growth forecasts, saying it now sees the global economy contracting by 1.3 percent this year before returning to growth of 1.9 percent in 2010. Email Story IM Story Printable View Blog This Recommend this article 0 users recommend Sign in to recommend this article » Most Recommended Stories » Enlarge Photo The Development Committee meet inside the World Bank in Washington, DC. The International Monetary Fund and World Bank met, focusing on aid to developing countries battered by the global financial crisis that is pushing millions more into poverty. Most Popular – Top Stories Viewed Obama dominates in first 100 days 'Golden Girls' Beatrice Arthur, dead at 86 Charred meat linked to pancreatic cancer risk $1 tln at risk in German banks: report Downturn hits Elton John, Paul McCartney View Complete List » Search: Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Copyright © 2009 Yahoo! Southeast Asia Pte Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Privacy Policy - Terms of Service - Community - Intellectual Property Rights Policy - Help

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