Developing Nations Raise Alarm on Iraq War Impact

April 14, 2003 - 0:0
WASHINGTON -- Developing countries asked the international community Friday to be ready to increase aid to help them recover from the economic waves caused by the Iraq war.

The Group of 24, a coalition of 24 developing countries from Africa, Asia and Latin America, expressed alarm over the destruction and human misery left by the war as well as the economic impacts.

The world economy is weaker than forecast and the outlook is highly uncertain, G24 policymakers said in a communique after meeting on the eve of weekend global financial talks.

Uncertainty has been fed by global imbalances, deep-rooted economic problems and slow growth in industrial nations and the bursting of the late 1990s technology-driven stock bubble, the statement said.

"This situation has been exacerbated further by the war in Iraq, which will have significant implications, not only for Iraq and the neighboring countries but is also likely to impact negatively on countries outside the region," they said. "Ministers urge the international financial community to be vigilant and stand ready to provide special financing to countries that may face significant burdens on their balance of payments and to mitigate risks associated with commodity shocks and the decline in tourism receipts and private transfers."

The developing countries, meeting ahead of the 184-nation International Monetary Fund-World Bank talks in Washington this weekend, said they were distressed by the aftermath of the conflict in Iraq.

"Ministers express grave concern about the serious situation prevailing in Iraq in the wake of the war and the resulting humanitarian plight of the civilian population and the destruction of the country's physical and social infrastructure," the statement said.

The policymakers called on the United Nations to address the crisis, meet the needs of Iraqis and contribute to rebuilding Iraq.

They also pressed the World Bank and IMF to help Iraq and other affected countries.

But the focus must not rest only on Iraq, said Lesotho Finance Minister Timothy Thahane.

"Clearly the attention is now on Iraq. Yesterday it was Kosovo and Eastern Europe. We still have to struggle for resources. Development is a long-term process," he said.

Developing countries underlined the importance of cooperation in international decision-making, apparently alluding to the U.S. and British decision to go to war against the Iraqi regime despite opposition from allies France and Germany, and major powers Russia and China.

"The heightened global uncertainty also reflects serious and more fundamental concerns regarding international decision-making," the G-24 chairman, Lebanese Finance Minister Fuad Siniora, told a news conference.

"The multilateral, cooperative and institutional approach that has long characterized the governance of the international system is under stress. For the last 60 years, this has been the backbone of the effort to promote global peace and development," Siniora said.

The G-24 groups Algeria, Argentina, Brazil, Colombia, the Democratic Republic of Congo, Egypt, Ethiopia, Gabon, Ghana, Guatemala, India, Iran, Ivory Coast, Lebanon, Mexico, Nigeria, Pakistan, Peru, Philippines, South Africa, Sri Lanka, Syria, Trinidad and Tobago, and Venezuela. (AFP)