Private sector investment - The International Monetary Fund (IMF) has called for an open trade channel and more private sector investment between the rich and the poor countries in order to fight poverty effectively. IMF president Christine Lagarde said this ahead of the three-day World Bank Spring Meeting which starts in Washington today. The meeting would be attended by Zambia's Secretary to the Treasury Likolo Ndalamei and Deputy Bank of Zambia (BoZ) Governor Austin Mwape.

Ms Lagarde said the way forward was to improve all round understanding of the world economy's growing interconnectedness through trade and finance.

She said IMF would work closely with Governments in the needy countries as they rebuilt policy buffers, while safeguarding critical spending and longer-term development objectives.

"We are developing a range of new tools to this end, including a new vulnerability exercise specifically these countries. These tools should help us highlight the key risks, and the implications for policy," she said. IMF, she said, would concentrate on capacity building and implement policies that would assist countries fight poverty.

She said the IMF would next month open a ninth regional technical assistance center, the fifth in Africa in Mauritius. Ms Lagarde said rich countries should play a more effective role in the long fight against poverty in the poorer nations. She said the impressive performance was a testament to the hard work and dedication of policymakers across the developing world over the past decade.

The countries reduced deficits and public debt, brought down inflation and built up foreign exchange reserves. "The food and fuel crisis of 2008, and the global financial crisis that followed were devastating for the poor but that this year, we a renewed surge in commodity prices that could plunge an additional 44 million people into poverty.

"These poor countries had achieved remarkable gains during recent years and they should be commended for that. But today, these gains are under threat. The international community including the IMF must be prepared to do even more to help these countries help themselves," she said.

She said the needy countries could withstand the new phase of the crisis but that with concerted efforts lasting gains to the world's poorest and most vulnerable people could be attained.

Times of Zambia/23/09/2011