Brown will head to
“It’s the countries that have got substantial reserves, the oil-rich countries and others who are going to be the biggest contributors to this fund,” Brown said before the trip, adding he also wanted
“I am going to the Gulf at the weekend and it is one of the items that will be in the discussions with all the international leaders.” But the Organisation of Petroleum Exporting Countries (Opec), whose top producer is
And experts say that even if
Adam Dixon of consulting firm Oxford Analytica said they might prefer a ‘piggyback strategy’ where they top up funds for countries like Pakistan from the IMF, which they see as dominated by the US and G7 countries.“In terms of funnelling it (the money) through the IMF, I don’t think so,” he told AFP. The IMF, which has or is about to bail out Hungary, Ukraine and Iceland, currently has a $250 billion dollar bail-out fund, but Brown wants this extended to stop economic ‘contagion’ spreading to other countries.
His trip to the Gulf comes ahead of a meeting of G-20 leaders in
The Gulf states, whose main economic driver is oil, have been hit by its price dropping below $60 a barrel this week from record highs of nearly $150 in July on fears of falling demand because of the slowdown.
Brown drew the ire of Opec and Gulf leaders for speaking against Opec’s decision at an emergency meeting last week to cut oil output by 1.5 million barrels a day from November in a bid to buoy up prices.
Opec’s Secretary General Abdalla Salem El Badri said on Tuesday it was ‘surprising’ that Opec countries, which produce around 40 per cent of the world’s crude, were being asked to ‘bail out’ the economic crisis.
“This crisis created in the (United) States must be solved within the States,” he told an oil conference in
“You can’t say to me ‘don’t do it, you’re the bad boy’ but with no solution,” he said. Meanwhile, UAE Energy Minister Mohamed Bin Dhaen Al Hamli said low oil prices were ‘very dangerous’ for the world economy, adding that a ‘reasonable’ price was needed to ensure continued investment.
As well as fears about how high oil prices could hit the global economy, Brown is facing pressure at home to reduce household fuel and petrol bills as householders face a likely recession in