UN Hit by Global Financial Crisis

The United Nations is warning of a US$4.8 billion shortfall in funding to tackle humanitarian crises in the world's poorest countries, as the credit crunch leaves developed world governments with little cash to spare.

John Holmes, of the UN's Office for the Coordination of Humanitarian Affairs, says that while the UN's emergency appeals had received more funds than at the same time last year, the economic crisis is exacerbating poverty and increasing need.

Holmes points out that, "It is clear that the global recession puts pressure on the aid budgets of all donor governments, but of course it puts immeasurably more pressure on crises-stricken people in poor countries."

The UN has raised a total of US$4.6 billion over the past six months for its humanitarian appeals, but Holmes says it has identified US$4.8 billion of "unmet needs".

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