Aid flows must be maintained

3.11.2008

The World Bank and the IMF have reassured representatives from developing countries that current economic crisis will not affect the poorest people. The two large international finance organisations jointly pledge to allocate funds to help developing countries to strengthen their economies along with analysis and advice. At the same time they urge governments not to forget the developing countries and honour their commitments towards development cooperation.

 

The status of the developing countries during the economic turmoil of the last weeks was the main topic of the meeting 11.-12.october. Robert Zoellick the President of the World Bank said the crisis was a man-made catastrophe. He said that donors who recently committed themselves to allocate funds to poor countries may not put their commitments aside because of sudden cash shortage or downswing in the economic system. Dominique Strauss-Khan, the president of IMF, points out the risk of poorer states to be falsely penalised; on the one hand by the difficulty in procuring foreign capital and on the other hand by lowering export prices.     

 

In the joint statement, donor states are encouraged to honour their commitments towards international development cooperation.