IMF chief urges more aid for poor countries
Saturday, 19 September 2009
WASHINGTON, Sept 18 (AFP): International Monetary Fund chief Dominique Strauss-Kahn yesterday called for stepped-up aid to poor countries to help them recover from the global economic crisis.
"We must make sure that any global recovery also lifts the low-income countries. These countries desperately need additional financing to tide them over, to give them adequate breathing space to cope with this crisis," Strauss-Kahn said in a speech prepared for delivery in Washington.
"Low-income countries need about 55 billion dollars in additional external financing for this year and next," the IMF managing director said at the Center for Global Development.
The IMF managing director said the Washington-based multilateral institution can provide about one-third of the aid needed.
"But donors also need to play their part. A further scaling up of aid at least in line with Gleneagles commitments is needed urgently," he said, referring to aid pledges made at the 2005 summit of Group of Eight industrial powers in Scotland.
The G8 nations -- Britain, Canada, France, Germany, Italy, Japan, Russia and the United States -- pledged to double their aid to Africa by 2010.
He recalled that G20 leaders had pledged to double IMF lending capacity to poor countries after their London summit in April.
Strauss-Kahn's comments came a week ahead of a US summit of the G20 developed and developing countries to discuss their measures to combat the global economic crisis and reform the financial system.
US President Barack Obama will host the September 24-25 meeting in Pittsburgh, Pennsylvania.
Strauss-Kahn pledged the IMF, which has faced criticism for imposing tough conditions on its lending, "from now on" would take a more flexible approach to debt.
"Programs will allow countries with lower debt vulnerability to borrow more, from both concessional and non-concessional sources," he said.
"Over time, we expect more and more countries to benefit from this flexibility -- and we will help them do so."
Strauss-Kahn said the world community "cannot ignore" the needs of the poor countries, "especially since the poorer countries are paying the price for rich country mistakes."
"Countries must resist the temptation to reduce aid, or to engage in trade or financial protectionism," he said.
"We must make sure that any global recovery also lifts the low-income countries. These countries desperately need additional financing to tide them over, to give them adequate breathing space to cope with this crisis," Strauss-Kahn said in a speech prepared for delivery in Washington.
"Low-income countries need about 55 billion dollars in additional external financing for this year and next," the IMF managing director said at the Center for Global Development.
The IMF managing director said the Washington-based multilateral institution can provide about one-third of the aid needed.
"But donors also need to play their part. A further scaling up of aid at least in line with Gleneagles commitments is needed urgently," he said, referring to aid pledges made at the 2005 summit of Group of Eight industrial powers in Scotland.
The G8 nations -- Britain, Canada, France, Germany, Italy, Japan, Russia and the United States -- pledged to double their aid to Africa by 2010.
He recalled that G20 leaders had pledged to double IMF lending capacity to poor countries after their London summit in April.
Strauss-Kahn's comments came a week ahead of a US summit of the G20 developed and developing countries to discuss their measures to combat the global economic crisis and reform the financial system.
US President Barack Obama will host the September 24-25 meeting in Pittsburgh, Pennsylvania.
Strauss-Kahn pledged the IMF, which has faced criticism for imposing tough conditions on its lending, "from now on" would take a more flexible approach to debt.
"Programs will allow countries with lower debt vulnerability to borrow more, from both concessional and non-concessional sources," he said.
"Over time, we expect more and more countries to benefit from this flexibility -- and we will help them do so."
Strauss-Kahn said the world community "cannot ignore" the needs of the poor countries, "especially since the poorer countries are paying the price for rich country mistakes."
"Countries must resist the temptation to reduce aid, or to engage in trade or financial protectionism," he said.