The poor 'will die'
2009-04-01 19:03
London - People will die in the world's
poorest countries if rich nations push them aside in the
scramble to escape the global economic crisis, Egypt's finance
minister said on Wednesday.
Developed countries are borrowing heavily on international
markets to fire up their economies, meaning poorer countries are
increasingly unable to do so, said Youssef Boutros-Ghali, who
heads the International Monetary Fund's policy committee.
"The stimulus we are creating in developed countries, we are
eliminating in emerging countries. We need to resolve that
contradiction - rich countries in the market, poor countries
being pushed out," he told a panel discussion at think tank
Chatham House.
"In emerging countries, a slowdown means people are going to
die, babies are not going to get the proper nourishment. Poverty
is at the doorstep, something needs to be done."
Leaders of the world's 20 largest developed and emerging
countries meet in London on Thursday to tackle the economic
slowdown, but some of their solutions are seen hurting people in
the rest of the world.
Development aid from the world's biggest donors rose to a
record level in 2008 but donors will need to make substantial
efforts to hit targets for 2010 because of the economic crisis,
the Organisation for Economic Cooperation and Development said
this week. At the same time, it predicted a 4.3%
contraction in its 30 rich members this year.
Millennium goals
At the 2005 Gleneagles G8 summit, major donors pledged to
double aid by 2010, amounting to an extra $50bn globally,
including $25bn for Africa. The Millennium Declaration in
2000 set a goal of eradicating extreme poverty by 2015.
Mark Malloch-Brown, Britain's Africa minister, told the
discussion that the poverty goal could be hard to meet.
"There is an estimate out there that 90 million more people
will be in poverty in 2011 than we would have assumed," he said.
"We are trying to finalise a strong package for tomorrow for
support for developing countries."
Leaders of the G20, which contribute 85% of the
world's gross domestic product, are expected to approve at least
a doubling in resources for the IMF to $500bn, to provide
more financial aid to struggling economies.
Boutros-Ghali will attend the summit, along with the prime
minister of Thailand, representing Asean nations, and Ethiopia,
representing Africa along with G20 member South Africa.
US President Barack Obama told reporters: "People are
losing their homes, losing their businesses... people around the
world who were already desperate before the crisis may find
themselves even more desperate afterwards."
Pope Benedict told British Prime Minister Gordon Brown the
summit should not forget about Africa.
"This situation must prompt a profound reflection among the
summit participants, since those whose voice has least force in
the political scene are precisely those who suffer most from the
harmful effects of a crisis for which they do not bear
responsibility," he said in a letter released by the Vatican.
- Reuters