The Financial and Economic Crisis of 2008-2009 and Developing Countries

This book examines how developing countries were affected by the global economic and financial crisis. It reflects on lessons learnt and on the policy agenda necessary for supporting such countries. Contributions fall into three categories: 1) general issues on the causes of the crisis and its transmission to the developing world; 2) country and regional case studies; and 3) policy recommendations. It is found that there is widespread awareness of a growing wedge between financial-sector growth and the real economy in many countries, which call for a rethinking of approaches to financial liberalization. Also, in the same way as the roles of business and the State need to be rebalanced at the national level, economic globalization requires enhanced global governance. Finally, the macroeconomic strategies of developing countries may need redirecting towards greater emphasis on employment creation and active domestic demand management.