Ideas to Action:

Independent research for global prosperity

Views from the Center

CGD experts offer ideas and analysis to improve international development policy. Also check out our Global Health blog and US Development Policy blog.

 

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.

Davos Dispatch: Clinton brings development to Davos

In contrast to Davos-in-NY in 2002, when the post-Sept. 11 talk was of the risk of terror and Davos 2003 when the corridor discussion was mostly about Iraq and the impending war, there is no grand obsession this year. There is sensible and mildly worried talk about whether the global economic recovery will be sustained. Most attention is given to the imbalances in the world economy – particularly U.S. budget and current account deficits; the Europeans’ tepid growth and stolid Central Bank reluctance to stimulate; and the Chinese resistance to letting their currency appreciate.

Pages

Tags