World Bank Says European Crisis is Hurting Developing Countries

Posted October 26th, 2011 at 7:05 am (UTC-5)
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World Bank President Robert Zoellick says new programs may be needed to help developing countries hurt by the European debt crisis.

Zoellick made the remarks Wednesday while touring a slum community outside the Philippine capital Manila where residents are benefiting from a World Bank anti-poverty program.

He said the European crisis has driven borrowing costs up and lowered stock prices and exports around the world, even in countries as far away as the Philippines.

The European crisis is also causing concern in Beijing, where Foreign Ministry spokeswoman Jiang Yu was asked about it Wednesday at a briefing.

She said China hopes the European Union will adopt effective measures to restore market confidence and stability.

Despite the severity of the crisis, Zoellick said he was not too concerned that European leaders are saying they need more time to come up with a comprehensive solution to the problem.

But he said the European leaders cannot take too long to decide what they want to do.

On Thursday, Zoellick will meet with Philippine President Benigno Aquino to discuss his efforts to fight corruption and revitalize the economy.