Downturn to Cost Billions in Aid to World's Poor

The squeeze has come as the needs of many crisis-hit communities, such as those in Zimbabwe, Sri Lanka and Sudan's war-torn Darfur region, are rising.

"The problems in Darfur haven't changed one iota because of Western bank failures. If anything, it's just gone off the agenda," said John Low, chief executive of the Charities Aid Foundation (CAF), which helps charities manage money.