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Rich and poor discussing downturn Poor countries seek downturn aid
(1 day later)
A summit on the world financial crisis gets under way at UN headquarters in New York later. Developing countries have called for more money to help them out amid the global financial crisis, on the first day of a UN meeting.
It is the first time rich and poor nations have got together to discuss the impact of the worldwide downturn. Negotiators say they believe a tentative agreement on what the meeting will produce has been struck.
The summit was called to give a voice to the poorest nations, who have been worst affected by a financial crisis they were not responsible for. While the crisis began in America, the poorest countries are now being hit as their exports fall and migrant workers send less money back home.
Negotiations on what should be agreed at the summit have been fraught, but a tentative agreement has been reached. Poor nations are seeking stimulus plans to revive their flagging economies.
In the acrimonious run-up to the summit, Western diplomats accused the Nicaraguan president of the UN General Assembly of trying to hijack the event and put global capitalism on trial. Zimbabwean Vice-President Joice Mujuru told the BBC if the international community did not provide Zimbabwe with a financial stimulus plan, it would be failing in its duty.
Behind the scenes, negotiators have been trying to produce an agreement acceptable to both developing countries and the developed world. "Now we are an inclusive government so there is no excuse for calling us this or that, and we are expecting them to support us, so that the inclusive government comes up successfully and is able to push on with the programmes that we have set for ourselves," she said.
The less well-off nations wanted their own financial stimulus, relief on their debt repayments, greater UN control over the World Bank and the International Monetary Fund and a follow up conference to make sure anything agreed at this one was acted upon. 'Missed opportunity'
The richest countries were wary of spending extra money, and fought against greater UN control over the financial institutions. Negotiations over what action this conference should call for have been fraught.
The outcome is a fudge. Many of the developed countries did want specifically to commit at this point to dollar amounts for a stimulus because they, of course, are also struggling with their own stimulus packages Camillo Gonsalves Saint Vincent and the Grenadines ambassador to the UN
There is a call for the 20 wealthiest countries to consider giving extra money to impoverished nations, a commitment to a follow-up working group and vague language on debt relief. Western diplomats accused the Nicaraguan president of the UN General Assembly, Fr Miguel D'Escoto Brockmann, of trying to put global capitalism on trial.
Critics say this is a missed opportunity because there is no immediate action to help those in greatest need, while supporters say this conference has given a voice to the developing world. Now it seems a tentative agreement has been reached.
Draft proposals call for increased aid and debt relief for poor countries to be considered but there is no commitment to a developing world stimulus plan.
Ambassador Camillo Gonsalves of Saint Vincent and the Grenadines, one of the chief negotiators, told the BBC why:
"Many of the developed countries did want specifically to commit at this point to dollar amounts for a stimulus because they, of course, are also struggling with their own stimulus packages and addressing the crisis nationally, from their own perspective."
"So what the document attempts to do is to set up a framework to carry this process forward."
Diplomats say the US is not happy with proposals which it fears could lead to developing countries being allowed to run up debts they will not be able to repay.
Immigrants working in the US are sending less money home, adding to the problem
Less well-off nations had wanted a clear commitment to a follow-up conference, to make sure any action agreed at this one was was actually taken.
Instead there is language on a working group.
A proposal for a UN global economic council to oversee the work of the World Bank and the IMF has been dropped.
Critics call this conference a missed opportunity but supporters say it is giving the developing world a voice in this financial crisis.