Secretary-General Ban Ki-moon meets with President Obama

Mar 13th, 2009 9:24 AM UTC
By ONE Partners

United Nations Secretary-General Ban Ki-moon’s first meeting earlier this week with President Obama comes amidst a deepening global economic crisis. The two pledged a new era of international cooperation and the pointed to the work jointly to find solutions.

President Obama said:

We talked about the economic crisis and how that’s affecting not only developed countries, but very poor countries around the world, and the potential threat to food supplies if it continues to worsen, and the need for international coordination.

The UN Secretary-general, who has said we also need to be concerned not only with Wall Street or Main Street, but those who have no streets,” emphasized that:

Leaders of G20 should not lose sight of the challenges and plight of hundreds of hundreds of millions of poorest people of the developing countries who have been impacted by this economic crisis. The leaders of industrialized countries should keep their commitment on Millennium Development goals and official development assistance, and help developing countries overcome food security and also help them to adapt and mitigate climate change.

His visit comes on the heels of more bad news about the crisis. According to a World Bank study prepared for next Saturday’s meeting of the Group of 20 finance ministers and central bank governors in London:

The global economy is likely to shrink this year for the first time since World War Two, with growth at least 5 percentage points below potential. World Bank forecasts show that global industrial production by the middle of 2009 could be as much as 15 percent lower than levels in 2008. World trade is on track in 2009 to record its largest decline in 80 years, with the sharpest losses in East Asia.

This is especially troubling for those least responsible for the crisis — the extreme poor. The study goes on to warn of financing shortfalls of anywhere between $270-700 billion as commodity prices continue to decline, global trade collapses, trade finance and private capital flows dry up and remittances drop.

And according to IMF Managing Director Dominique Strauss-Kahn, “The worst of the crisis is still to come,” specifically in Africa. The poorest countries lack the social safety nets to deal with the crisis and are becoming increasingly dependent on overseas development assistance.

Unfortunately even before the financial crisis hit, rich countries were falling short of their commitments by about $39 billion a year. At least in the U.S., the President’s budget (PDF) goes against the tide. It designated $51.7 billion for the State Department and other International Affairs Programs, a $4.5 billion increase from fiscal year 2009.

As the situation continues to spiral download, some people are looking to the April 2 G20 summit in London to provide a more pro-poor response. Both the UN Secretary-general and President Obama will participate in the G20 meeting.

-Anita Sharma, UN Millennium Campaign

TAGS: Ban Ki Moon, Barack Obama, Development Assistance, G20, G20 London 2009, Governance and Security, Policy News, Trade