In Washington on October 9th, World Bank President Robert Zoellick expressed concern about the impact of the financial crisis on developing countries. He warned that as the crisis spreads, developing countries should be prepared for potential business failures, bank emergencies, and balance of payments crises. Zoellick mentioned that the combination of a financial squeeze and rising food and fuel prices will make it harder for governments in developing countries to support the poor. A new report from the World Bank predicts that high food and fuel prices will lead to an increase of 44 million malnourished people worldwide in 2008, bringing the total to over 960 million. The report also identifies around 28 countries that may face fiscal challenges. He mentioned that he would disclose the details later on Thursday before weekend meetings of finance leaders in Washington. Zoellick stated to Reuters that it is crucial to consider the risk of developing country growth, which depends on their policies and support from the World Bank and others. He remains optimistic about the potential for sub-Saharan Africa to become a center of growth in the medium and long term, but acknowledges that it will require proactive actions and investments. Zoellick emphasized that the World Bank is collaborating with developing countries to make them aware of the assistance they can provide in preparing contingency plans and supporting countries with struggling banking systems. The financial crisis poses a significant threat to the progress made in many developing countries in recent years in terms of economic growth, poverty reduction, and healthcare. Between 1997 and 2007, an average of 6 percent growth was seen in 17 countries in Sub-Saharan Africa, most of which were non-oil producers. Additionally, 8 oil-producing countries saw an average growth of 8 percent during the same time period. Zoellick expressed concerns about the economic challenges that may arise from the crisis originating in the United States, but noted that improved economic management, reduced conflicts, and the potential for high returns on investments have led to increased interest from the private sector in developing countries. Countries such as China, Brazil, India, and Gulf countries have been among the investors contributing to south-south investment, where emerging economies invest in one another. Zoellick expressed his belief that China would continue investing in natural resources in Africa and Gulf states would focus on investments in agriculture despite the impact of the financial crisis on emerging economies. He emphasized the importance of looking towards the future and turning current challenges into opportunities. Zoellick highlighted the need for coordinated action by Western central banks and China to address the financial crisis and its humanitarian consequences, such as increasing malnourishment. He suggested that developed countries could contribute to a World Bank fund to assist developing countries facing higher food and fuel prices, provide support to small farmers, and help address climate change and trade challenges. We can contribute, but it is necessary for developed countries to also take coordinated action in order to support our efforts.