1 of 4 | U.S.Treasury Secretary Henry Paulson (R) walks in front of U.S. Federal Reserve Board Chairman Ben Bernanke during a photo session with the Group of Seven finance ministers and central bank governors on the steps of the Treasury Department in Washington on October 10, 2008. The world ministers pledged decisive action to deal with the worst the global financial crisis since the Great Depression. (UPI Photo/Roger L. Wollenberg) |
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WASHINGTON, Oct. 12 (UPI) -- Global financial institutions must be ready to mitigate the impact of financial crisis on the world's poor, U.S. Treasury Secretary Henry Paulson said Sunday.
"Financial market developments are having an acute impact on advanced economies, and we can expect the crisis to have major ramifications for emerging markets and the poorest countries as well," Paulson said in a statement at the World Bank-International Monetary Fund Development Committee meeting in Washington.
Just as the world's wealthy countries responded to the challenges posed by the steep increases in food and fuel prices, they also must be ready to provide similar assistance to "the poorest and most vulnerable" adversely affected by the financial crisis, Paulson said.
"Now, these same countries are likely to face a host of new pressures stemming from declines in export demand, private investment and remittances," Paulson said. "Emerging markets, too, are likely to face difficulty accessing private capital necessary to finance critical priorities, such as infrastructure."
Paulson also spoke of the international financial community's response to the environment and World Bank reforms.
The United States supports the World Bank's focus on climate change "as it is clear that the issue must be addressed in the context of development financing," he said.
In addition, proposed World Bank reforms -- such as another board member for sub-Saharan Africa -- would enhance "the voice and vote of the poorest member countries," Paulson said.
