Financial Crisis Hits Poor Countries, Too
Posted on December 10, 2008 by Dan Sadowsky
Developing countries aren't spared from the pain caused by the global financial crisis, according to a new World Bank report.
In releasing its Global Economic Prospects 2009 yesterday, the bank posted a press release that began: "The world financial crisis has dimmed short-term prospects for developing countries ...."
Today's Wall Street Journal includes a short, accessible story about the report.
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Trade Drop Hurting Developing Nations
The global recession is causing a decrease in funds for global trade that will hurt developing countries the hardest, according to the World Bank.
The World Bank is focused on creating more efficient methods to export goods for developing countries while reducing the costs of engaging in international trade For example, the World Bank's "Aid for Trade" program was established because developing countries did not have the fiscal strength to invest in international trade. More than just richer countries giving money to poorer nations for global trade investments, the World Bank is now expanding "Aid for Trade" in areas such as, trade-related infrastructure and logistics to facilitate getting exports to ports more efficiently.
Danny Leipziger, Vice President of the Poverty Reduction and Economic Management network at the World Bank, says “It’s really incumbent on all countries to keep international trade and finance flowing, because that can limit the damage of the global downturn; we all stand to benefit the most from that, especially developing countries.”
What a delima ?
At the time of financial crises we need to come together united and try to solve the problems which are responsible for such a hazard. We need to overcome it. It is meant to bring calm to the population and markets and display government strength and stability.
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