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The Saudi initiative to set up a $1 billion Organisation of Petroleum Exporting Countries (Opec) fund to help poor countries cope with the rising oil prices comes at the right time. The project should be supported by major regional and international players.
The price of oil has more than doubled in a year to almost $140 a barrel, triggering protests in Asia, Europe and Africa over spiralling fuel costs that threaten the world's economy. The increase in crude prices came as the US dollar sank to its record lows and food prices skyrocketed.
"In this critical hour, the world community should rise to its responsibility and cooperation should be the cornerstone of any efforts... to enable developing countries to face the rising cost of energy," said King Abdullah Bin Abdul Aziz at the opening of a meeting of world oil consumers and producers in Jeddah on Sunday.
The rising costs of energy, food and other materials make it extremely difficult for poor countries to meet their development goals. In fact, most projects are either being delayed or stopped altogether.
The proposed fund will surely not solve the problem. But it will help alleviate some of the pressure on governments to provide basic services to their populations. The fund needs to be supported and developed into a long term programme that would - one day - end the less fortunate states' dependence on it.
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