Chancellor Gordon Brown has announced a set of proposals, which aim to provide both aid for the countries affected by the tsunami disaster and to help eradicate poverty in the world's poorest countries.

Speaking at the National Gallery in Scotland, ahead of next month's G8 ministerial meeting, the Chancellor laid out the proposals the UK will be making as president of the group: "Although the scale of last week is unprecedented, tragically natural disasters can befall any country," he said. "But the capacity of countries to withstand and respond to these events in part reflects the state of the emergency services, health care systems, the basic infrastructure. And all of these reflect the underlying levels of prosperity and poverty. Put starkly, countries without adequate warning systems, with less developed health care and sanitation systems, with poorer infrastructure, weaker institutional capacity and fewer resources are more vulnerable during disasters, less able to cope in their aftermath and a minute of devastation can wipe out years of development."

The Chancellor said the "unprecedented" demonstration of generosity in the wake of tsunami disaster had provided a unique opportunity to help highlight the problems faced by the world's poorest countries and provide aid for them.

"It is this moral sense exhibited in the worldwide response to disaster that shows not only what can be done, but also demonstrates what has not to be done – that we address the underlying causes of poverty," Mr Brown said.

Describing the proposals as a new "Marshall Plan", the scheme set up by the US to help rebuild Europe after the Second World War, Mr Brown said that he would be calling on all countries at the G8 meeting to agree on the three elements of a 2005 development plan for a "new deal" for developing countries.

These would include: delivering full debt relief for the affected countries; beneficial world trade deals for the poorest countries with measures to ensure that these countries benefited from new trade; the development of a new international finance facility to offer immediate, predictable, long term aid for investment and development.

The Chancellor said: "While 2004 was a year which ended in the horror of a natural disaster, 2005 is a year that can start with the hope of human progress. 2005 is a year of challenge, but also a year of opportunity when – from the foundation of hope – we can, I believe, see real change."

(KMcA/SP)