Global Development Finance 2009: Charting a Global Recovery

Over the past two years, the world has seen turmoil in a relatively small segment of the U.S. credit markets morph into a severe global economic and financial crisis. Although aggressive monetary policy, fiscal stimulus, and guarantee programs to shore up the banking industry have begun to stabilize financial markets and slow the pace of economic contraction, policy makers face an extended battle to revive the global economy. Underlying the current crisis is an interconnected world economy that is in the midst of a tough transition from an extended period of abundant credit and economic overheating to a new era whose hallmarks will be a resurgence in the role of government in global financial affairs, quantitative easing by major central banks, continued consolidation of the financial sector, large excess capacity in many industrial sectors, and, compared to the first half of the decade, slower global growth once recovery takes hold. Going forward, national and international policy makers must support emerging signs of recovery with persistent, robust efforts to restore confidence in the financial system and transform the adverse feedback loop between the financial sector and the real economy into a positive one. With analysis and data extending from short-term bank lending to long-term bond issuance in both local and foreign currency, 'Global Development Finance 2009: Charting a Global Recovery' is unique in its breadth of coverage of the trends and issues of fundamental importance to the financing of the developing world, including coverage of capital originating from developing countries themselves. The report is an indispensable resource for governments, economists, investors, financial consultants, academics, bankers, and the entire development community.