Marita Hutjes, Oxfam senior policy advisor said: “The updated World Economic Outlook figures released by the IMF today show that in 2009 an additional 85 million people will be plunged into poverty. In Sub Saharan Africa alone GDP is predicted to fall by 5.2 percent since 2007.
“This unprecedented global financial crisis calls for unprecedented action for poor countries. Oxfam is calling for an immediate fiscal stimulus for the poorest countries of $42 billion, along with debt relief and fulfillment of existing pledges to increase development aid.
“The IMF says that fiscal stimulus has made a ‘gigantic difference’ for the world economy in this crisis. It should also be allowed to make a difference in the poorest countries. The IMF should commit to supporting fiscal stimulus measures in the poorest countries.
“This is peanuts compared to the $8,4 trillion mobilized to prop up ailing banks. Rich countries can come up with the money when they want to. AIG’s executive bonuses alone could have paid for enough teachers for 7 million children in Africa.
“Rich countries must arrive in Washington DC this week with concrete funding commitments, including to the Vulnerability Financing Facility set up by the World Bank to channel funds to those hardest hit by the twin food and economic crises. Donations to this fund must be new and additional and not a diversion from existing aid commitments. We would also want this assistance to come without harmful economic conditions attached.”
Tags: Add new tag, Financial crisis, Poverty, World Bank/IMF
