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WB chief urges G8 to act now
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World Bank President Robert B. Zoellick has called on leaders of the G8 as well as the major oil producers to act now to deal with surging food and energy prices, warning that the world is now "entering a danger zone".

Zoellick's call is contained in a July 1 letter to the head of the upcoming G8 summit in Japan, in which the Bank, World Food Program (WFP) and International Monetary Fund estimate that about 10 billion dollars is needed to meet short term needs of people hit hardest by the crisis.

"What we are witnessing is not a natural disaster a silent tsunami or a perfect storm: It is a man-made catastrophe, and as such must be fixed by people," Zoellick said in the letter made available to Xinhua on Wednesday.

"I urge the Group of Eight countries, in concert with major oil producers, to act now to address this crisis. This is a test of the global system to help the most vulnerable, and it cannot afford to fail," said the World Bank chief.

He said the G8 made a commitment at the Gleneagles Summit in 2005 to boost overall development aid, to Africa in particular, by 2010, noting such aid was needed now, more than ever, as Africa accounted for two thirds of the countries most under stress by the food and fuel crisis.

"For 41 countries, the combined impact of high food, fuel and other commodity prices since January 2007 represents a negative shock to GDP of between 3 and 10 percent," he said. "These numbers translate into broken lives, and stunted potential. For the most vulnerable, especially poor children, they mean malnutrition, reduced resistance to disease, and too often death."

"Record oil prices and high and rising food costs threaten a growing number of countries with rising poverty and social instability. Already we have seen food riots in over 30 countries, and unrest over high fuel prices is spreading. The urban poor are especially affected by the double hit of food and fuel," he warned.

In his letter, Zoellick urged the G8 to consider two new measures to "improve the world's ability to cope with an on-going food crisis."

The first was a UN assessment on guaranteeing a portion of funding for the World Food Program. The second was to study the merits of an internationally coordinated "virtual" humanitarian strategic reserve system for food emergencies.

"The international community is facing an unprecedented test in this new era of globalization: the question is whether we can act swiftly to help those most in need, "he said.

"For globalization to work successfully and achieve its promise, it must be inclusive and sustainable. This means acting now in the interests of the poor who are most affected by this double jeopardy of food and fuel crisis, and who are least able to help themselves," he added.

(Xinhua News Agency July 3, 2008)

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