The Impact of the Financial Crisis on Developing Countries
The crisis has surged across the public-private boundary, as the hit to private firms’ balance sheets has now imposed heavy new demands on the public sector’s finances. It has surged across national borders within the developed world, as the people...
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| Format: | Speech |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/936671487075432884/The-impact-of-the-financial-crisis-on-developing-countries http://hdl.handle.net/10986/26129 |
| Summary: | The crisis has surged across the
public-private boundary, as the hit to private firms’
balance sheets has now imposed heavy new demands on the
public sector’s finances. It has surged across national
borders within the developed world, as the people of Iceland
know all too well. And nowthere are reasons to fear that the
crisis will swamp emerging markets and other
developingcountries, cutting into the considerable economic
progress of recent years. The developing world – what it has
recently achieved, how these achievements are now at risk,
and what it must now do – is the focus of this paper.
Understandably, perhaps, until now the focus of policymakers
has mostly been on the actions of the governments at the
epicenter of the crisis, as well as those of other developed
countries like Japan and Korea. This brief discussion of the
dynamics of global growth in 2002-07, focusing on the
mutually reinforcing booms in the developed and developing
world. It also how all this growth began to unravel in
2007-08, starting with the US housing crisis. how we can
respond to the crisis to ensure that the costs to the
developing world are as small as possible. |
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