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Recession is a human disaster for Third World

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Recession is a human disaster for Third World

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A less-than-united front has appeared among world finance leaders attending the IMF’s Spring meeting this weekend in Washington.

Tensions have flared over how to carry through key elements in the pact agreed earlier this month at the G20 summit in London. Then, over €375 billion of extra funding was pledged for the IMF to help out cash strapped economies but so far only over €220 billion has been raised. A split has also opened up between the US and Europe over Washington’s call for a greater representation of emerging market countries at the IMF table. Europe fears a reorganisation would be at its expense. But while the developed world is hurting in the financial crisis, for the developing world it is turning into a human disaster. Lacking the resources to respond, up to 90 million more people will be trapped in extreme poverty this year due to the recession. Hopes of meeting the millennium goals including Targets in reducing hunger and infant mortality by 2015, the report warns, are unrealistic.