A World Bank Perspective

With regards to the European debt crisis,my guess is,the International Monetary Fund and the European Union will muddle through,says World Bank President Robert Zoellick.The developed markets have obviously been stumbling along.China does seem to be slowing a little bit,but I think it's appropriate so as to avoid a bubble situation.
People are gonna be moving at different speeds with different issues.That's the nature of the new global market we are in.
Food prices are about 50% higher,but the risk is,the stocks for wheat and grain are very,very low,making them vulnerable to price shocks.The low income countries and big wheat importers in the Middle East are hurt the most.We've launched a pilot with JP Morgan Chase providing some additional credit support and access to commodities markets derivatives to insure some of these players.
The European Union is pretty slow,with its low population growth.As they muddle through,the question is whether they will make the necessary structural changes,Mr.Zoellick wonders.
The World Bank offers financial and technical assistance to developing countries worldwide.It provides resources,shares knowledge,builds capacity and forges partnerships in the public and private sectors.Founded in 1944,it has more than 10,000 workers in over 100 offices around the globe.
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IMF Takes Helpful Steps

The International Monetary Fund is providing special assistance to poor countries struggling through the financial crisis.Interest payments on outstanding loans will be waived through 2011.As well,up to 17 billion dollars in emergency aid will be granted through 2014.About half of that will be paid out through 2011.IMF gold sales will generate some of the funding.The IMF,based in Washington,D.C.,is an autonomous U.N. agency that is prominently involved in development issues along with The World Bank.

Brown Calls For Unity

Gordon Brown,the British Prime Minister,said that the economic downturn can only be ended by international cooperation.Individual countries can do a great deal to help their own economies,but only global efforts can provide a long term solution,through better regulation and coordinated intervention.The International Monetary Fund and World Bank must play a larger role in crisis prevention and resolution.Only a truly international response of policy and governance can be effective,Mr.Brown stated.If we all coordinate our response,there will be a quicker global,and therefore British,recovery,he maintained.Mr.Brown plans to meet with CEOs of the largest international banks in April to discuss dealing with global financial problems.

World Bank Increases Aid

The World Bank will increase aid to developing nations.Aid may reach 35 billion dollars by the end of June,versus 13.5 billion last year.The bank is prepared to commit up to 100 billion over the next three years,as the financial crisis threatens to cut government revenue,reducing public spending on education and health care.The growth forecast for developing countries is a drop of 0.1 in 2009,versus a gain of 1.4 in 2008.Global trade may fall for the first time since 1982.A 10% drop in developing country growth means another 20 million people will live in poverty.In recent years,high food and fuel prices have driven about 100 million into the ranks of the poor.The World Bank,led by President Robert Zoellick,has received loan inquiries from countries in Asia and Latin America this year,and would not be surprised to loan to nations it hasn't heard from in some time,given the global downturn.