October 12, 2008—Our meeting took place at a critical time for the global economy, with financial markets experiencing unprecedented turmoil. Developing countries - many of them already hit hard by high prices for energy and essential foodstuffs -- risk very serious setbacks to their efforts to improve the lives of their populations from any prolonged tightening of credit or a sustained global slowdown.  The poorest and most vulnerable groups risk the most serious - and in some cases permanent - damage. 100 million people have already been driven into poverty this year and that number will grow.
The World Bank will join with the IMF and others to draw on the full range of our resources -- finance, analysis and advice - to help developing countries strengthen their economies, bolster their financial systems, maintain growth, and protect the most vulnerable groups against the impact of the current crises. Â
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This has been a man-made catastrophe. The actions and responses to overcome it lie in all our hands. We must also ensure that as governments and publics turn their attention close to home, they do not step back from their commitments to boost overseas assistance to meet the Millennium Development Goals.  Aid flows must be maintained. Today's meeting of Ministers was unanimous in that regard.
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The World Bank Groups stands ready to help our partner countries:
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The Bank’s recently announced $1.2 billion rapid financing facility is providing immediate help for countries coping with the impact of high food prices on the poor and already has $850 million approved or in the pipeline. We urge countries to consider making contributions to this fund. Australia has recently contributed 50 million Australian dollars, but we need more.
We will move forward with a planned new program - Energy for the Poor - that would provide rapid support for countries’ efforts to strengthen social safety nets to protect the poor against the impact of high fuel bills.Â
IBRD has the financial capacity to very comfortably double its annual lending to developing countries to meet additional demand from clients. And we can go further.
During the Asian financial crisis 10 years ago, we created a special lending instrument to support countries with additional funds to meet urgent and extraordinary needs. We can scale up this support beyond our regular lending.
IFC is exploring the possibility of a fund to help recapitalize banks in developing countries.
We will also support longer-term efforts beyond the immediate crisis, including:
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Expanded help for energy-deficit countries to improve energy efficiency and improve domestic production to reduce their vulnerability to future price shocks.
Playing a stronger role in helping countries deal with the causes and effects of climate change, and the recent launch of the new Climate Investment Funds to which 10 countries recently contributed over $6 billion.
As the current crisis has unfolded, Â people in the United States and Europe have reacted first with confusion, then frustration, then anger, and then fear. Those natural reactions will spread around the world as the impact spreads. We need to take them seriously.
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The events of September and October have underscored that we need to modernize multilateralism and markets for a new global economy. Our publics expect no less.
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Some may say today's crisis should take all our energy and focus. The architects of Bretton Woods laid the foundations for the future, even as they still fought the armies of the past. We need concerted global action now not just to deal with this crisis, but to put in place new architecture, new norms, and new oversight to ensure that this crisis never happens again.
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