Developing countries worry about uneven world economic

Developing countries worry about uneven world economic

Harry Dunphy, Associated Press/Washington

The sharp increase and continuing volatility of oil prices risk
serious harm to a growing global economy, the Group of 24
developing countries said on Friday. So do uneven expansion of
the world economy and tightening financial markets.

In a communique issued on the eve of the spring meetings of
the International Monetary Fund, the Group of 24 said to keep the
global economy humming the United States should act to rein in
its budget deficit and Europe and Japan need to boost their
sluggish economies and stimulate consumer demand.

The ministers said they worry about widening trade deficits in
the U.S. and other countries because they "increase the risk of
disruptive movements in the exchange rates of the major
currencies and in interest rates."

The group also urged emerging market Asian nations to loosen
their currency exchange rates, many of them pegged to the U.S.
dollar. The U.S. is expected press its allies at the weekend to
try to influence the Chinese to ease their currency regime, and
do it now, to help reduce the U.S. trade deficit.

The G-24 was established in 1971 to coordinate financial and
aid policies for the developing countries. It includes richer,
relatively more-developed members such as India, Egypt, Brazil
and Mexico. China sits in the meeting as an observer.

The ministers noted that "growth prospects in many countries,
particularly the low-income countries, are clouded by high and
unsustainable debt levels. This calls for continued attention to
prudent macroeconomic and debt management policies in these
countries as well as a concerted effort by the international
community to increase debt relief and conditional financing."

Industrial countries should open their markets to developing
country exports and remove agricultural subsidies, the Group of
24 said.

"This is something we have been asking for years,and it
doesn't hurt to keep repeating it," said Paul Toungui, the
president of the Group of 24, who is finance minister of Gabon.

The ministers also appealed to the international community to
ensure that pledges of support for Asian countries hit by last
December's devastating tsunami "are translated into actual
disbursements."

They welcomed recent elections in the West Bank and Gaza and
Afghanistan and Iraq. They urged the IMF and the World Bank to
provide the new Palestinian government with technical and
financial assistance it needs to operate effectively.

Referring to development goals world leaders established five
years ago -- reducing poverty, eliminating illiteracy and
improving health care - the ministers said achieving them remains
a challenge, particularly in Africa south of the Sahara.

"Ministers call on the World Bank as well as other
multilateral institutions and bilateral donors to further
increase their assistance to African countries to support their
efforts to meet" the development goals, the communique said.

The ministers said the role of small and low-income countries
in the governance of the IMF and World Bank is very limited and
stressed the need for concrete actions "to reduce the democratic
deficit and enhance the voice and participation of developing
countries in decision-making at the IMF and World Bank."

They expressed appreciation to outgoing World Bank President
James Wolfensohn, who steps down June 1 after 10 years at the
head of the bank, and welcomed Paul Wolfowitz, his replacement.