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By Guo Xiaohong

Developing economies have been most affected by the global recession and need more international aid to help them ride out the crisis, said panelists in a session on "The Global Downturn and the Developing World," at the 2009 Summer Davos forum that opened yesterday afternoon in the Chinese port of Dalian.

Sha Zukang, Under-Secretary-General of UN's Dept. of Economic and Social Affairs, at the session World Downturn and the Developing World, held on Sept. 10, in Dalian. [Catherine Guo / China.org.cn]

"The developing economies have to suffer for no fault of theirs in the crisis, and they are the most-affected victims, with shrinking exports, rising unemployment, decreased investment and capital outflow," said Sha Zukang, under-secretary-general of the UN Department of Economic and Social Affairs. "The United Nations attaches importance to these countries as they lack capabilities and effective leverage to lift themselves from the downturn."

More effective and unconditional international aid, such as debt reduction and technical and financial support should be given to the developing world, added Sha. Developed countries should open their markets, increase aid and help poorer countries avoid deepened indebtedness, said Sha.

Egyptian Investment Minister Mahmoud Mohieldin appealed for measured, appropriate stimulus packages that avoid the risk of excessive deficits and inflation that would only worsen the situation of developing countries.

Egypt's Investment Minister Mahmoud Mohieldin at the panel discussion [Catherine Guo / China.org.cn]

"Asian economies like China, Korea, Japan and Malaysia are contributing more to most of our capital," said Mohieldin. He cautioned that while China's weight in the world economy is growing rapidly, its current role in solving the crisis should not be exaggerated, as Chinese economic structures and consumption patterns are so different from the rest of the world.

Sha Zukang underscored this view, pointing out that, while China is showing strong signs of recovery, it remains a middle-to-low-income country and the U.S. and Europe remain the leading forces in the world economy.

Zhang Xiaoqiang, vice minister of China's National Development and Reform Commission, urged the UN, the World Bank and the IMF to play a more active role in solving development and poverty issues and work towards realizing the Millennium Development Goals (MDG). He said that both South-South and South-North collaboration were vital in solving the crisis.

Vice Minister Zhang Xiaoqiang of NDRC at the session [Catherine Guo / China.org.cn]

Zhang said that although China's annual per capita GDP is only US$3,000, it is willing to help other developing countries, especially in Africa, through trade, technology and investment by Chinese enterprises.

In addition to the global downturn, the panelists also discussed climate change and new energy.

The 2009 Summer Davos meeting – officially known as the Annual Meeting of New Champions – will run from September 10 to 12 in the port city of Dalian in northeast China's Liaoning Province. The theme of the meeting is re-launching growth, and more than 1,300 industrialists, politicians and thinkers, from 86 countries, are attending the gathering.