“The ‘financial crisis’ is not confined only to the United States. As economic turmoil spreads to global markets, world leaders are reacting to the U.S. “bailout plan”. Stock markets around the world have plummeted and fears of a global recession.
Question: Do you think that the financial crisis is spreading rapidly to the previously resilient developing world?
Pointer 1: Global trade is forecast to shrink in 2009 for the first time since 1982
Pointer 2: Foreign investment and short-term credit are drying up
Pointer 3: Developing country exports are falling; large amounts of capital have been withdrawn
Question: Why Many developing countries face sharply tighter credit and higher interest rates?
Pointer 1: GDP growth in developing countries is expected to fall to 4.5% from a projected 6.4%
Pointer 2: Private capital flows are expected to drop from $1 trillion in 2007 to $530 billion in 2009
Pointer 3: Remittances that workers send to home countries are projected to decline
Question: What is the reason that Before the financial crisis hit, many countries were already suffering a food and fuel crisis?
Pointer 1:100 million people have fallen into extreme poverty, according to Bank estimates
Pointer 2: Another 44 million children are malnourished
Pointer 3: Measures to offset rising prices have left many countries fiscally vulnerable
Question: How Poor and middle-income countries are helped to limit the damage and prepare for recovery.
Pointer 1: Drawing on international assistance where necessary
Pointer: 2 Investing in infrastructure and safety nets
Pointer 3: Continuing to improve their business climate and attract investors
Question: Do the Global problems call for multilateral solutions?
Pointer 1: Leaders need to craft policies that bring more countries into the economic mainstream
Pointer 2: Opportunities and responsibilities for the new global economy must be shared
Pointer 3: The international community needs to look beyond financial rescue to the human side of the crisis