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Monday, 19 November, 2001, 02:28 GMT
Terror attacks 'will worsen' poverty
Demonstrators stage a protest outside the talks' venue in remembrance of those who have died through poverty
Demonstrators called for more help for the world's poor
The attacks on America on 11 September are likely to worsen poverty in many developing countries.

That was the conclusion after a weekend of talks in Ottawa by the International Monetary Fund (IMF), the World Bank, and finance ministers from the G20, which brings together 19 nations and the European Union.

The notion of two worlds, the rich and poor, or the developed and developing world, collapsed with the World Trade Center

James Wolfensohn
World Bank President
In a communique, the ministers said the attacks on the United States have deepened the global economic slowdown and already led to weaker exports and lower commodity prices for many developing nations.

The World Bank president, James Wolfensohn, was among those at the meeting urging an increase in development aid provided by rich countries.

"There's, I think, an almost uniform recognition that poverty and distress in one part of the world is poverty and distress in another," he said.

The notion of two worlds - one rich and developed, the other poor and developing - collapsed when the World Trade Center collapsed, he said.

Targeting aid

UK Chancellor Gordon Brown told the Ottawa meeting that he wanted to double the amount of aid given to poor countries, to $50bn.

But his American opposite number, US Treasury Secretary Paul O'Neill, said aid needed to be used more effectively.

"Over the last 50 years the world has spent an enormous amount of money in the name of development without a great deal of success," Mr O'Neill said.

BBC economics correspondent Andrew Walker says this will be a difficult issue for the United Nations conference on financing for development next March, when the UN will assess the resources needed to achieve its goals for reducing poverty.

There is a sense that 11 September has produced a greater unity of tone between the ministers meeting in Ottawa, but this has not translated into a definite agreement on policy.

The BBC's Andrew Walker
"Some have called for an increase in development aid"
Merril Lynch's Shada Dean
"It is a global issue"
See also:

19 Nov 01 | Business
Partial success at Ottawa talks
18 Nov 01 | Business
US recession raises global fears
17 Nov 01 | Business
Trade key to wealth, banker says
15 Nov 01 | Business
IMF and World Bank focus on downturn
18 Nov 01 | Business
World Bank faces 'great challenges'
18 Nov 01 | Business
IMF backs terror funds crackdown
17 Nov 01 | UK Politics
UK calls for war on poverty
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