The World Trade Organisation (WTO) should monitor the economic downturn's effect on the developing world, Trade and Industry Minister Rob Davies said on Thursday.

"The current bailout packages of several developed countries, while a necessary counter-cyclical measure, could also exacerbate existing imbalances," Davies said in his prepared remarks to a WTO conference held in Geneva.

"The current economic crisis that began in the developed world has impacted on the developing countries in the form of diminished investment flows as well as the massive job losses and increased levels of poverty."

Davies said the WTO should monitor the impact on the developing world. He also called for reform of the organisation away from its present trade mandate, to one that encouraged development.

"For South Africa this must focus on strengthening the consensus principle and ensuring a more inclusive and transparent approach to decision-making," said Davies.