Developing world may need US dollar 700 billion -World Bank
Dar Es Salaam, 09 March-(ANA)-Developing countries could face a financing gap of US dollar 270 billion to US dollar 700 billion this year as trade income dwindles and rich nations vie for capital to deal with a global slump, the World Bank has said.
The World Bank said even at the lower end of that estimate, resources of international institutions would not be sufficient to meet the financing needs as more and more emerging and developing countries are hit.
"Should a more pessimistic outcome occur, unmet financing needs will be enormous," the World Bank said in a paper prepared for meetings of the G20 group of countries in London in April.
The World Bank spends billions of dollars annually fighting poverty in developing countries.
Last week, the International Monetary Fund said developing countries would need $25 billion, and possibly as much as $140 billion, in 2009 to meet their financing needs.
The World Bank said the crisis could have long-lasting repercussions for developing countries, which are contending with a drop in exports as world trade shrinks for the first time since 1982 at the same time remittances from overseas workers slow and falling commodity prices saps a revenue source many countries rely on.
"The challenge facing developing countries is how, with fewer resources, to pursue policies that can protect or expand critical expenditures, including on social safety nets, human development and critical infrastructure," the World Bank said.(ANA)
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