WASHINGTON, Sept 24: Co-ordinated international effort is needed to combat the threat to global economic growth posed by soaring oil prices, British finance minister Gordon Brown said on Friday.

Brown, in Washington for the annual meetings of the International Monetary Fund and World Bank, said high oil prices were reducing growth right across Europe and raising inflationary pressures.

Concerted international action — with dialogue among producer and consumer nations — is required to tackle the risk to global growth posed by current high and volatile oil prices, Brown said in a submission to the International and Monetary Financial Committee, the IMF’s policy-steering group.

His proposal to solve the problem included an increase in oil supply, greater transparency, new World Bank funding for investment in alternative energy for developing countries, an IMF facility to help poorer countries deal with commodity price shocks.

Brown also told reporters that he had been in touch with seven major oil companies and had been assured they would spend 10 per cent more on investment in the future by drawing on the windfall profits they receive from higher fuel prices.

—Reuters