World Bank President Robert Zoellick has cautioned developing countries to brace themselves for tougher times as the financial crisis in Western economies unfolds. Zoellick stated that business failures, bank emergencies, and balance of payments crises could all potentially occur in developing countries as the crisis spreads. The financial squeeze, along with rising food and fuel prices, will pose challenges for governments in developing countries to protect the poor. A new World Bank report, prepared for upcoming meetings of world finance ministers, 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 encounter fiscal difficulties. He stated that he would reveal the details later on Thursday before weekend meetings of finance leaders in Washington. Zoellick emphasized the importance of looking at the risk of developing country growth and the impact of policies taken, along with the support provided by various organizations. He expressed optimism about the potential for sub-Saharan Africa to become a center of growth in the future, but acknowledged that it would require proactive actions and investments. The World Bank is working with developing countries to raise awareness of the services it can offer to help them create contingency plans and support their banking systems in times of strain. The financial crisis poses a significant threat to the progress made in developing countries in terms of economic growth, poverty reduction, and healthcare improvements. Between 1997 and 2007, 17 countries in Sub-Saharan Africa experienced an average growth rate of 6 percent, with most of them being non-oil producers. In contrast, 8 countries that were oil producers saw an average growth rate of 8 percent during the same period. Zoellick mentioned at a news conference that there is concern about the potential economic challenges that may arise from the crisis originating in the United States. Improved economic management, reduced conflicts, and the promise of high returns on investments have attracted more interest from the private sector in developing countries. Countries such as China, Brazil, India, and Gulf nations have become major investors in other emerging economies, leading to an increase in south-south investments. Zoellick expressed confidence that China will continue investing in natural resources in Africa despite the financial crisis affecting emerging economies. He also mentioned that Gulf states are looking into investments in agriculture. He emphasized the importance of turning problems into opportunities and suggested that Western central banks and China should work together to help developing countries deal with the financial crisis and the increasing issue of malnourishment. Zoellick also proposed that developed countries contribute to a World Bank fund to assist struggling developing countries with food and fuel prices, provide fertilizer to small farmers, and energy to the poor. He highlighted the need for support from the World Bank and International Monetary Fund for governments facing balance of payments challenges, climate change, and trade issues. "We are able to participate, but we require developed countries to take coordinated action in order to provide support."