OTTAWA (Reuters) - This week’s G20 summit is likely to boost resources for poor and developing countries through the World Bank and the International Monetary Fund, Canadian Finance Minister Jim Flaherty said on Monday.
“This recession is hurting some of the lowest-income countries in the world. Canada’s always been prepared to help and we are prepared to help again,” Flaherty told reporters in advance of the London summit of the world’s leading economies.
A Canadian government spokesman had said on Friday that the best way to help the poor countries at the moment is to get the global economy growing again.
But Flaherty said it is also important that increased credit be available through regional banks and the International Monetary Fund and, for the lowest-income countries, the World Bank.
The plight of the poorer nations figured into his opposition to the summit discussing China’s idea of replacing the U.S. dollar with the IMF’s Special Drawing Rights as the main reserve currency.
“I don’t think this is the time to be talking about reserve currencies. We have a global recession,” he said.
“We have a lot of people out of work in the world, and it’s getting worse, particularly in some of the lower-income countries. What we need to talk about is getting banks fixed so that the real economies can start to recover around the world.”
Reporting by Randall Palmer; editing by Peter Galloway