Wednesday, May 27, 2009

A two tier world not to forget the poor at the G20 conference while discussing bonuses

How much more uncaring and evil can this society become is reflected in what matters most to them and this is mirrored at the G20 summit where Europe snipes at the US, and discusses bonuses or no bonuses, instead of considering the poverty trap of the developing countries where children en mass starve literally at the rate of 22 per hour in 2009.World Bank President Robert Zoellick brought this to our attention as the issue of "food or no food". Oh well,squabble as usual as they could not care less for these vulnerables and that is obvious.A week of interest on the bailout money of 8.4 trillion would eliminate death during childbirth Negligible sums!! Zoellick made a telling statement which I wager will go completely unheeded amidst the eternal squabbling of these selfish preoccupied countries:

  1. We could allocate 0.7% of the stimulus packages for developing countries

  2. For safety net funding for the most at risk

  3. This gesture/act would prove to the world that this G-Group will not endorse a two tier world.

  4. Fat chance this plan will ever come to fruition.

  5. 50 billion for trade support is listed below and will combine a 1 billion dollar investment that will accomplish the following:

a. with financinjg from governments and regional dvelopment banks

b. leveraged with risk sharing from private sector partners

If we purposely fail to alleviate this poverty problem, it will surely face us starkly in another way and give rise to a seedbed of possibvle later terrorism.

Newser) – While world leaders waste bicker, the global economic crisis hurts
more than your 401(k), Nicholas Kristof writes in the New York Times. The crisis
will cause another 22 children to die every hour in 2009—and that’s the World
Bank’s best-case scenario. So it’s really discouraging when European leaders
indulge their “penchant for sniping at the Unites States instead of doing more
to resolve the mess.”
“In London, Washington and Paris, people talk of
bonuses or no bonuses,” said the World Bank president. In the poorest nations,
“the struggle is for food or no food.” A week’s worth of interest on the $8.4
trillion in financial bailouts could all but eliminate death during childbirth,
Kristof notes.
The G-20 could address the poor with negligible sums—but instead,
it’ll likely squabble as usual

LONDON, March 31 (Xinhua) -- Leaders from the Group of 20 (G20) developed and
emerging economies should not forget the world's poor population when they meet
in London later this week, World Bank President Robert Zoellick said on
"In London, Washington and Paris people talk of bonuses or no
bonuses. In parts of Africa, South Asia, and Latin America, the struggle is for
food or no food," Zoellick said in a speech ahead of the G20 summit, which was
released in London.
The World Bank warned that in the wake of the financial
crisis, there would be a sharp slowdown in economic growth in the developing
world this year, putting more poor people at risk,
It was estimated that
economic growth in developing countries would slow sharply to 2.1 percent in
2009, a more than three percentage point decline from last year, while the world
economy would contract by 1.7 percent this year compared to growth of 1.9
percent in 2008, the first global decline since the Second World War.
would actually decline in Central and Eastern Europe, Central Asia, and Latin
America and the Caribbean
About 53 million more people would be trapped in
poverty this year, subsisting on less than 1.25 U.S. dollars a day, because of
the crisis.
Zoellick said world leaders should learn from previous economic
crises in Latin America in the 1980s and Asia in the 1990s and not repeat the
mistake of ignoring the plight of the most vulnerable. Developing countries
needed to be part of the global solution to the global crisis
"Isn't it time
to institutionalize support for the most vulnerable during crises, especially
those not of their own making?" said Zoellick, who has proposed that developed
countries allocate 0.7 percent of the stimulus packages to a fund for developing
"A commitment to put in place structures to support and fund
safety nets for those most at risk would go a long way to show that this G-group
will not endorse a two tier world
, with summits for financial systems, and
silence for the poor." he added, calling for market economies with a human
As global trade in goods and services was predicted to fall six percent
this year, the largest decline in 80 years, Zoellick in particular called on G20
leaders to back a new 50-billion-dollar fund for trade support.
The fund will
combine a 1-billion-dollar investment from the World Bank with financing from
governments and regional development banks. These public contributions can be
leveraged by a risk-sharing arrangement with major private sector
"G20 backing will help us gain more momentum, thereby increasing
support," Zoellick said.
The World Bank chief said many of the immediate
challenges of the crisis could be addressed if the G20 reformed and empowered
existing international institutions to help resist protectionism, evaluate the
effectiveness of stimulus packages and monitor banking reforms.
"If leaders
are serious about creating new global responsibilities or governance, let them
start by modernizing multilateralism to empower the World Trade Organization,
the International Monetary Fund and the World Bank to monitor national
policies," Zoellick said.
"Bringing sunlight to national decision-making
would contribute to transparency, accountability, and consistency across
national policies," he added.

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