Developing countries, which make up the vast majority of the 192-member assembly, argue that they are paying the price for a crisis that was created by the developed world. -- PHOTO: AP
UNITED NATIONS - THE UN General Assembly kicks off a three-day high-level conference on Wednesday to weigh measures to help the poorest and most vulnerable countries weather the global financial and economic crisis.
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These include external financing to make up the estimated one to US$2 trillion shortfall in income from reduced exports by developing countries and the outflow of capital caused by the crisis.
The funding would come from new Special Drawing Rights (SDRs), an international reserve asset, which could be issued by the International Monetary Fund and would be provided on the basis of need.
Assembly President Miguel D'Escoto Brockmann, the organiser, said the event aimed to 'identify emergency and long-term responses to mitigate the impact of the crisis, especially on vulnerable populations.
The conference will also 'initiate a needed dialogue on the transformation of the international financial architecture, taking into account the needs and concerns of all member states.' Developing countries, which make up the vast majority of the 192-member assembly, argue that they are paying the price for a crisis that was created by the developed world.
Organisers noted that the World Bank is projecting a finance gap of up to US$700 billion (S$1.02 trillion) in developing countries, resulting in additional deaths of 1.5 to 2.8 million infants by 2015 and more than 100 million people tipping over into extreme poverty each year for the duration of the crisis.
Martin Khor, executive director for the South Center, a Geneva-based policy think tank for developing countries, stressed that the international response to the global crisis has been undertaken by exclusive clubs such as the Group of Eight (G8) or Group of 20 (G20) while most developing countries have had no say.
But in an apparent sign of lack of interest, key developed countries are sending low-level delegations.
Mr D'Escoto, a former Nicaraguan foreign minister, said he was 'relieved' that a revised outcome document due to be adopted at the end of the three-day meeting has been finalized.
The document is based on recommendations submitted by a panel of economic and financial experts from around the world on immediate and longer-term measures as well as practical steps for reforming the international financial architecture. -- AFP
