"Developing world may need $700 billion"

Reuters had an article yesterday, quoting the World Bank, indicating that the development aid needed for poor nations will be of the same order as the incentive package in place for the United States:

Developing countries could face a financing gap of $270-$700 billion -- equivalent to the latest U.S. economic rescue package -- to help deal with the effects of the global crisis, the World Bank said Sunday.

The World Bank said even at the lower end of that estimate, resources of international institutions would not be sufficient to meet the financing needs as more and more emerging and developing countries are hit.

Comment: Another confirmation of the gravity of the current problem. I fear that foreign aid, foreign direct investment, remittances to developing counties, and other sources of development finance will all shrink during this global recession! JAD

Here is the World Bank study.:

Swimming Against the Tide:
How Developing Countries Are
Coping with the Global Crisis (235k pdf)