The World Bank said last night it was gearing up to lend $100bn (£63bn) over the next three years to protect developing nations from the economic contagion spreading from richer western countries.

Dashing hopes that the world's emerging economies might escape relatively unscathed from the downturn, the Bank said it expected almost 40 million people to fall into poverty as a result of the turmoil caused by the global credit crunch.