A statement, issued after a day-long deliberations at the development committee, the policy-making body of the bank, said the strategy should include the following key elements; Maintaining and accelerating progress on structural reforms, including governance structures required for the efficient working of markets; Restructuring the banking system and corporate sectors and, in the short term, restoring credit to viable businesses; Mobilising necessary resources to finance growth; Regenerating demand and; Protecting the environment.

``Crucial to all these elements is a focus on social concerns and the need to mitigate the most harmful effects of the crisis on thepoor,'' it added.Finance ministers who attended the annual world bank meeting warned that, if it were allowed to continue, financial turmoil could result in major setbacks to the global economy and particularly to the progress most developing countries had achieved in 1990s. The committee recommended actions to help restore confidence and prevent contagion in the event of market pressures.

It asked the emerging market countries to strengthen their policies and institutions at an early stage to minimise their vulnerability to adverse shifts in investor sentiment and industrial countries to take early and decisive actions to help regain or maintain growth momentum and global financial stability.

All countries should continue the process of market opening and resist protectionism. All countries and the international financial institutions need to attach high priority to the projection of good governance and the elimination of corruption, it added.

Ministers stressed that given the magnitude of reversals incapital flows that east Asia and other regions had experienced, resumption of private flows was key to recovery. They also emphasised the important catalytic role played by official flows from multilateral agencies and bilateral sources.

In this context, the committee agreed that beyond responding to the immediate crisis, and parallel with the ongoing efforts to improve the international financial architecture, concerted actions were needed to help countries bolster their structural and social policies and institutions.

These include strengthening the financial sector, establishing a sound business environment, improving public and private sector governance, particularly transparency and accountability, and strengthening social protection. Ministers also reminded the World Bank of its primary role of helping eliminate poverty and improving social well being, in line with international development goals. They, therefore, encouraged the World Bank to work with the United Nations, the Fund and otherpartners to develop general principles of good practice in structural and social policies, including labour standards.

The committee welcomed the prompt response of the bank group to the crisis, including the pledge of up to $17 billion in financing for affected countries in the region.

Given the increasing demands on the bank's financial resources, ministers asked its executive board to explore appropriate options to ensure that the bank remains able to respond quickly and effectively to the development needs of its members. The committee expressed its appreciation for the major efforts undertaken by the International Monetary Fund and bank to help countries deal with the crisis and its broad consequences.