CASTRIES, St Lucia – Against the backdrop of a worrying global economic situation, finance ministers of the 53-nation Commonwealth late Monday opened deliberations here deemed by the host Prime Minister Stephenson King as not only "timely" but "urgent".

"It is profoundly clear that governments of the Commonwealth and the world over are staring down an avenue of chaotic activities that indicate that something grave is taking place, and the effects seem to be contagious," said King, in an address to the opening session of the two-day meeting.

The Castries meeting has been called to identify various policy responses to issues impacting on the economic and social development of Commonwealth states, particularly small economies that have been reeling from global food and energy prices.

In the case of St Lucia, King said his government had been forced to subsidise fuel, as well as the cost of basic commodities, to the tune of millions of dollars for the period April to June 2008, in response to the global situation.

"Small countries such as ours, with limited fiscal freedom, cannot continue to sustain these subsidies over the medium term and difficult decisions regarding the price of basic commodities must be made," said King, who is also the island's finance minister.

"Ultimately, it is the poor who feel the greatest impact of such price shocks and all governments must commit to improving the social circumstances of these vulnerable groups," he added.

The prime minister said though the problem went beyond the Commonwealth's control, the grouping needed to take immediate action.

"We must urgently make the most of opportunities such as these high-level multilateral meetings of the minds, to find out both national and international responses to the issues that our peoples and economies are now facing," he said.(CMC)