Wednesday, November 23, 2016

Financial and Economic Crisis in Developing Countries

The worldwide measures to deal with the gravest economic crisis since the Great Depression in the 1930s began to show the first signs of recovery in late summer and early autumn 2009. Most predictions are still cautious. Thus, immediately prior to the meeting of the Group of 20 (G-20) ministers of finance in London at the beginning of September the Managing Director of the International Monetary Fund (IMF), Dominique Strauss-Kahn, was concerned that the recovery was both fragile and slow-moving. He warned against growth without employment and against discontinuing the economic stimulation programmes too early, and he also demanded coordinated measures on an international plane (Strauss-Kahn 2009).

The various predictions, particularly for China, India, Brazil, Japan and a few other Asian countries, were optimistic. The United Nations (UN) Economic Commission for Latin America and the Caribbean also predicted a return to positive growth in 2010. But by far not all the countries and regions reported a brightening of the economic prospects in early autumn. The crisis is by no means over for the majority of the developing and transition countries.


As inconsistent as the recovery pattern is now, there was a similar lack of consistence in the impact of the financial and economic crisis on the individual countries and regions worldwide. For a long time it was hoped that the threshold and developing countries would be able to disconnect from the financial crisis in the developed countries of America and Europe due to their improved macro-economic structural conditions. However, the notion of disconnecting from the crisis proved false. The crisis did impact the developing countries, principally via financial flows and through trade. The developing countries and international organisations took a number of steps to mitigate the effects of the crisis, but with varying results. The agenda of international discussions is still set bearing in mind the interests of the rich countries

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