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Crisis? Not If We Take a Long View (Development Impacts of Financial Crisis)

When you’re done reading today’s news stories about the crisis, take a deep breath. Media coverage is focused on the very short term, as usual. Speculation abounds that we live in a different world now. I’m reminded of portentous claims after the Asian Financial Crisis that “the miracle was over”, claims which look very overwrought in hindsight. In historical perspective, many of the most worrisome recent crises are small bumps on a very long road.

Middle Income and Emerging Markets May Be Most at Risk (Development Impacts of Financial Crisis)

As with all financial disasters -- whether it's your neighbor’s lost job or a macroeconomic shock -- the first thing people want to know is "will it hit me?" This question must be on the minds of ordinary people and macroeconomic policymakers across the world, including those in developing countries. The policymaker's answer will depend on two things: (1) how closely is her country integrated in the international financial markets; and (2) how vigilant have her country's regulators been in regulating and supervising its capital markets?

Thoughts on the Financial Crisis and the Other Kind of Contagion (Development Impacts of Financial Crisis)

Relatively short-lived ups and downs like this are far less important than the long term trends: the growth of emerging economies, the impact of global warming, the changing age structure and disease patterns across the world. Like a hurricane, a financial crisis reminds us of how vulnerable we are, and how the most vulnerable are the least well protected. But just as a single hurricane doesn't tell us much about the climate, this episode of financial crisis doesn't tell us much about the longer term forces that, in the end, shape our collective destiny.

Poor in Developing Countries are Victims of Our Mistakes (Development Impacts of Financial Crisis)

I suspect that the fallout from this crisis will remind us all that rich world growth and macro policy still matter for developing countries and for the poor within them, even though some of these economies are very large and have been growing very rapidly. The growing interconnectedness of the world -- globalization -- means that they are victims of our mistakes just as we are increasingly vulnerable to theirs.

U.S. Financial Crisis Will Mean Slower Growth, Rising Inequality in Developing World (Development Impacts of Financial Crisis)

For many developing countries, the U.S. credit crisis will mean slower growth and rising inequality. The effects will be protracted, and not all will show up at the same time. And the nature and degree of impact will vary widely. Some countries, notably those with extensive foreign exchange reserves and strong fiscal positions, will be much better able to cope than others. But overall the crisis is very bad news for developing countries and especially for the poor.

Effective Economic Growth for People: The Role of the United States

Political stability and sound domestic economic policies are the main ingredients in making development possible, according to William R. Cline, joint fellow of the Center for Global Development and the Institute for International Economics. In a presentation to the Society for International Development on December 12, 2004 Cline suggested three areas the U.S. should focus on in order to increase global development and reduce poverty.

Trade

Resolution of Argentina's Financial Crises

Aware of the crucial importance for Latin America of reaching a prompt and effective solution to the current financial problems in Argentina, this statement reflects the assessment and recommendations of the Latin American Shadow Financial Regulatory Committee (LASFRC) for moving towards that end. The statement has three parts. First, it identifies the major features and problems facing the Argentine banking system. Second, it assesses alternatives for crisis resolutions. Third, it advances on general lessons applicable to the region.

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