Brown proposes £35bn 'new deal' to halve poverty in developing nations

Gordon Brown will today outline plans for a "new deal" for the world's poorest countries under which rich nations would channel £35bn a year to the developing world.

Addressing the Federal Reserve Bank in New York, the Chancellor will propose the setting up of a special new fund to enable the world to deliver ambitious plans backed by the United Nations to halve world poverty by 2015.

His call for a "global campaign against poverty and for social justice" develops Tony Blair's call for a new world order after the US terror attacks.

Mr Brown proposes a trade-off under which rich countries would agree to a massive increase in aid in return for commitments by developing nations to reduce corruption and put poverty reduction at the centre of economic policy-making.

Answering the criticism by anti-globalisation campaigners, he will say: "Some people say the issue is whether we have globalisation or not. In fact, the issue is whether we manage globalisation well or badly, fairly or unfairly.

"Managed badly, it will leave whole economies and millions of people ... marginalised. Managed wisely, it can lift millions out of poverty and manage the high road to a just and inclusive global economy."

Mr Brown's blueprint will include an internationally-agreed code of monetary and fiscal standards for Third World countries; more transitional help from rich nations and a stronger role for the International Monetary Fund.

Speaking in London last night, Mr Brown told the Institute of Directors that measures to boost enterprise would be at the heart of his pre-Budget report on 27 November. He promised cuts in capital gains tax to encourage long-term investment.