IMF warns of threat to poorer nations
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02/07/2008
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Financial Times (London)
The rise in food and oil prices could "severely weaken' the economies of up to 75 developing countries, including Pakistan and Indonesia, the International Monetary Fund said on Tuesday in its first broad assessment of the crisis. Dominique Strauss-Kahn, IMF managing-director, warned that some countries were now at "a tipping point' because of the double impact of rising food and oil prices. He said that if agricultural commodities prices continued to rise, even if oil prices remained stable, "some governments will no longer be able to feed their people and at the same time maintain stability in their economies'. The warning is a sign that policymakers are increasingly concerned about the impact of the food and fuel crisis, not just in humanitarian terms but also its effect on economic and political stability. The problem will be high on the agenda at the G8 summit this month. In its assessment of the impact of the commodities crisis, the IMF warned that "a prolonged period with prices around or above