The world's poorest nations and the global financial crisis
Document Type
Journal article
Source Publication
World Economics
Publication Date
10-1-2009
Volume
10
Issue
4
First Page
25
Last Page
44
Keywords
Development, Global financial crisis, Great recession, Growth, Inequality, Poverty, Subprime
Abstract
Unlike many earlier financial crises, the current sub-prime-induced crisis originated in advanced economies (in the US housing sector) in the summer of 2007, and rapidly mushroomed into a global financial crisis by September 2008. Developing nations, especially the 'least developed countries' (LDCs), have been hit particularly hard with a sharp drop in export demand and in net capital inflows. The current turmoil threatens to undo the impressive gains in economic growth and convergence many developing nations have achieved over the past decade -- a reversal of fortune that includes casting millions back into poverty. What explains the vulnerability of the LDCs, and how have the G8, the G20, the IMF and the World Bank responded to help mitigate the economic and social costs of the crisis? How can developing nations, especially the poorest, better insulate their economies from the vagaries of the global financial markets? This paper addresses these issues.
Print ISSN
14681838
E-ISSN
14743884
Publisher Statement
Copyright © NTC Publications Ltd. 2009
Language
English
Recommended Citation
Imparato, N., & Sharma, S. D. (2009). The world's poorest nations and the global financial crisis. World Economics, 10(4), 25-44.