Germany favours global stimulus package for world's poorest

Jun 25, 2009, 16:52 GMT

New York - Germany concurred Thursday with a growing demand for the establishment of a global stimulus plan that will benefit the world's 'poorest of the poor.'

The global stimulus is a key recommendation by civil society groups and developing countries to keep poorer economies afloat as the recession spreads to all corners of the world.

German Minister for Economic Cooperation and Development Heidemarie Wieczorek-Zeul said in an address to the United Nations General Assembly that the global stimulus should embrace ecological concerns proposed by the UN in what is known as a 'green new deal.'

'This financial and economic crisis is a rupture of historic dimensions,' she told the assembly on its second day of debate on the financial crisis.

'It is the evident failure of market radicalism and an obvious sign for a lack of responsible, sustainable and coordinated political action on global economic issues.'

Wieczorek-Zeul urged the world to avert a massive humanitarian disaster in the wake of the crisis, citing World Bank predictions that about 200,000 to 400,000 more children could die each year between 2009 and 2015.

Germany supports a strengthened UN role in global economic governance and the setting up of commissions to deal with specific tasks to assist developing countries. But she said the global stimulus should go to the poorest in the world.

Wieczorek-Zeul said Germany will deliver on Official Development Assistance (ODA), a scheme under which rich governments are requested by the UN to donate 0.7 per cent of their gross national income towards development in poor countries. Only the Nordic and Scandinavian countries have reached or surpassed the limit.

'This conference is an act of solidarity with all those whom these rights have been denied so far - including the freedom of expression,' she said, calling for achieving freedom from want, freedom from fear and freedom to live in dignity for the poor.

The assembly's three-day debate on the global financial crisis was to end on Friday with the adoption of a document that would respond to demands for assistance by developing countries hit by the recession.

The document calls for a stimulus package of over 1 trillion dollars, which is the amount agreed upon by the G20 - the Group of 20 richest nations - when they met in London in April to devise measures to fight the recession. The group is scheduled to meet again in September in Pittsburgh.

The UN and government representatives are calling on the G20 to deliver on the promise for the stimulus.