developing nations

Talking about the global financial crisis at Wednesday's opening of a three-day UN financial summit developing countries along with UN officials called for more money and a greater role in regulating the world economy, reports the Associated Press. Blame for the crisis was laid on financial liberalization and deregulation in the United States and other rich nations. It was stated that the world financial system should be reformed under the auspices of the United Nations.

On Sunday finance and aid ministers from the 185 member countries of the World Bank and International Monetary Fund called on rich states to provide aid to the poorer states as more nations are plunging into the poverty falling victims to the financial crisis. The ministers also said that it might be necessary to raise more resources for the World Bank if the economic turmoil aggravates.

The global economy will contract this year for the first time since World War II with the heaviest hit to fall upon the shoulders of the poor and developing states, says the World Bank. According to the forecasts trade will decline to its lowest point in 80 years in 2009 with the most tangible decreases expected in East Asia that in its due time featured incredible growth.