BBC News Online: Business

Terror attacks 'will worsen' poverty

Demonstrators called for more help for the world's poor

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 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.