Lula blames rich nations for crisis

Brazil leader says "irresponsibility" could destroy developing world's fiscal progress.

    The Brazilian stock exchange fell sharply on Monday on news of the failed bail-out plan [Reuters]

    "We know this crisis is serious, we know that it's going to reduce worldwide credit, but we're sure that our exports will continue going well, our industry will continue growing," he said.

    Al Jazeera's Teresa Bo said Lula's view was widespread across South America where the financial crisis was being seen as the failure of the US free-market system.

    'Perfect storm'

    Brad Durham, of EPFR Global, a US-based research firm, said the turbulence hitting Brazil and other developing economies "was due to a perfect storm of bad news".

    "[Growing economies that] have done everything to have good fiscal policy ... can't be turned into victims of the casino erected by the American economy"

    Luiz Inacio Lula da Silva, Brazil president

    He cited the lack of a bail-out package in the US, falling commodity prices and lack of credit in the markets, among other issues.

    Lula said government funding of infrastructure projects deemed vital to Brazil's economic future would not be affected because "Brazil isn't going to throw away this opportunity after so many years of waiting for growth".

    The Brazilian leader said "that those responsible" for the global financial crisis had to take swift action to end the economic free-fall.

    "It's not fair for Latin American, African and Asian countries to pay for the irresponsibility of sectors of the American financial system," he said.

    SOURCE: Al Jazeera and agencies


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