Southeast Asia says war, SARS cloud outlook

Southeast Asia says war, SARS cloud outlook

Agence France-Presse, Washington

Southeast Asian economies face substantial risks this year from the Iraq war fallout and the SARS virus, the region's representative told economic leaders Sunday.

Economies in the region weathered difficulties and posted modest growth in 2002, Indonesian Minister of Finance Boediono told meetings of the International Monetary Fund and World Bank.

"However, this year's prospects are more uncertain," said Budiono, speaking on behalf of Brunei, Fiji, Indonesia, Laos, Malaysia, Myanmar, Nepal, Singapore, Thailand, Tonga and Vietnam.

"Economic imbalances, notably in the major industrialized countries, the developments in Iraq and the recent SARS outbreak all involve substantial risks," Budiono warned.

"Nevertheless, we believe that global and regional economic momentum will pick up by the end of the year."

Severe Acute Respiratory Syndrome (SARS) has killed 132 and the fallout is causing growing disruption.

Budiono called for a sharp increase in official aid from rich nations, and better use of resources by developing countries, to meet agreed development goals including halving global poverty rates by 2015.

"A performance-based approach must not overlook the importance of supporting reform in countries that have not met performance criteria due to institutional constraints," the minister said.

Developing countries should be give a bigger voice in the policymaking of the IMF and World Bank, he said.