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WASHINGTON - THE World Bank on Thursday called on donors to boost aid to poor nations hit by a financial crisis that is 'not of their making' ahead of a UN development conference this weekend.
Developing countries 'find themselves at the mercy of a crisis not of their making,' World Bank President Robert Zoellick said in a statement.
'A retreat to protectionism or economic nationalism by developed countries will hurt them even further,' he added.
The World Bank said the G7, representing the world's most developed nations, are currently US$30 billion (S$45.1 billion) short of the commitments to debt relief and increased aid made at a 2005 Gleneagles summit.
In a paper prepared for the conference in Doha this weekend, the World Bank said developing countries are facing a 'perfect storm.' At a time of slowing world growth, investment is vital to stem the impact of severe food and fuel price crises, the lender said.
The World Bank's top economist Justin Yifu Lin stressed how 'empowering developing and emerging countries is imperative.' 'Helping nations pursue economic development and long term prosperity should be the goal of development finance. We must not lose sight of this principle amidst the current crisis,' he said.
Earlier this month the World Bank lowered its growth forecast for developing country economies to 4.5 per cent for 2009 from a prior projection of 6.4 per cent in July, citing the financial turmoil, slower exports and weaker commodity prices. High-income developing economies were expected to contract by 0.1 per cent next year as the global economy slows to a meager 1.0 per cent growth rate.
'This is not just about finance, as crucial as that is,' Mr Zoellick said.
'In a world where developing countries represent new drivers of global growth, we must learn to listen to their experiences, and we must take better account of their needs,' he added.
'Financing for development is no longer about the old paradigm of aid dependency or charity, it is about an investment in a stable, prosperous and inclusive future.' UN Secretary General Ban Ki-moon, with the help of Qatar, has summoned heads of state to Doha on Friday to discuss the global financial crisis ahead of a finance and development conference from November 29 to December 2. -- AFP
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