Developing countries need money to weather 2010: World Bank chief

Developing countries need money to weather 2010: World Bank chiefIstanbul, Oct 2  Developing nations will need outside support to help them boost domestic demand as the world begins an uncertain recovery from a devastating economic crisis, World Bank President Robert Zoellick said Friday.

Speaking ahead of the World Bank and International Monetary Fund's annual meetings here, Zoellick said many emerging countries were poised to become major drivers of world growth. He sought more funds for the World Bank to help them complete the process.

"A multi-polar economy is a more stable global economy," Zoellick told reporters. But he said many poorer countries would need more loans from the World Bank to help them raise domestic demand.

Zoellick warned that the World Bank's own funds were beginning to run dry. The development institution has nearly tripled its lending to $33 billion in the past year as the world plunged into a deep recession, from which it is only just emerging.

"Our shareholders are gonna have to calculate how close they want to run us to the edge," Zoellick said, warning that the World Bank resources could run out by 2011.

Zoellick said the world's recovery remains uncertain. Massive public spending efforts will likely come to an end in 2010, and it is unclear whether there will be a smooth "handoff" to the private sector. The World Bank and IMF could yet be needed to fill the gap.

The World Bank will be making its plea for more cash when the Development Committee of the IMF and World Bank meets Monday. (dpa)