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.