Kenya's finance minister hits out at rich nations over crisis
Kenya's finance minister hit out at rich countries at the source of the financial crisis on Saturday, reflecting anger about the consequences on the economies of developing nations.
By Agencies |
WASHINGTON: Kenya's finance minister hit out at rich countries at the source of the financial crisis on Saturday, reflecting anger about the consequences on the economies of developing nations.
"Who will compensate the innocent countries who are going to ... suffer from this debacle?" John Michuki told reporters at the annual meetings of the International Monetary Fund and World Bank in Washington.
Referring to sanctions, he underlined that there were political and economic punishments imposed by the world community on countries that violated international norms.
"On the political front, the world imposes sanctions on countries that look delinquent. Is there any more serious issue in the world than the crisis we are facing today?" he said.
He also expressed concern that IMF monitoring had not identified the problems and prevented the crisis, which stems from the US housing market but has been exacerbated by poor regulation of the financial sector.
"Some of us are very concerned because surveillance that should have been put in place by the IMF, and the (IMF) article IV which is the mechanism to put discipline on the markets, appeared not to have been applied," he said.
Cameroon Finance Minister Essimi Menye also worried about the impact on his country's economy and expressed concern that rich nations would downgrade aid to Africa as a priority.
"The level of involvement of our economies is very limited. That's the reason that the immediate effects as seen in other countries are not visible (in ours)," Menye told reporters.
"But we are expecting a delayed impact on our exports because it's almost certain that the prices of raw materials that we export are going to fall."
Menye expressed concern that aid efforts for Africa would be forgotten by rich countries as they faced up to the enormous expense of rescuing troubled banks and dealing with a major economic downturn.
"I expect that at first one keeps the umbrella for oneself rather than giving it to the person next to you," he said.
"I think the people of advanced countries have problems because of this crisis and these countries are not going to run into the African savannah to come and help us."
Kenya's Michuki called for new aid for Africa.
"We hope that the developed world, the strong nations, correct (this and) ... then will simultaneously put in place a continued program of aid that does not interrupt investment and growth in Africa."
"Who will compensate the innocent countries who are going to ... suffer from this debacle?" John Michuki told reporters at the annual meetings of the International Monetary Fund and World Bank in Washington.
Referring to sanctions, he underlined that there were political and economic punishments imposed by the world community on countries that violated international norms.
"On the political front, the world imposes sanctions on countries that look delinquent. Is there any more serious issue in the world than the crisis we are facing today?" he said.
He also expressed concern that IMF monitoring had not identified the problems and prevented the crisis, which stems from the US housing market but has been exacerbated by poor regulation of the financial sector.
"Some of us are very concerned because surveillance that should have been put in place by the IMF, and the (IMF) article IV which is the mechanism to put discipline on the markets, appeared not to have been applied," he said.
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Cameroon Finance Minister Essimi Menye also worried about the impact on his country's economy and expressed concern that rich nations would downgrade aid to Africa as a priority.
"The level of involvement of our economies is very limited. That's the reason that the immediate effects as seen in other countries are not visible (in ours)," Menye told reporters.
"But we are expecting a delayed impact on our exports because it's almost certain that the prices of raw materials that we export are going to fall."
Menye expressed concern that aid efforts for Africa would be forgotten by rich countries as they faced up to the enormous expense of rescuing troubled banks and dealing with a major economic downturn.
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"I expect that at first one keeps the umbrella for oneself rather than giving it to the person next to you," he said.
"I think the people of advanced countries have problems because of this crisis and these countries are not going to run into the African savannah to come and help us."
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Kenya's Michuki called for new aid for Africa.
"We hope that the developed world, the strong nations, correct (this and) ... then will simultaneously put in place a continued program of aid that does not interrupt investment and growth in Africa."
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