Article 1: EFFECTS OF THE GLOBAL ECONOMIC CRISIS ON DEVELOPING COUNTRIES

This article is written by Dr. Martin Khor, the Executive Director of the South Centre. In this paper, he analysed that Global Economic Crisis has severely effects on developing countries through the financial route and trade route respectively, then proposed developing countries National, Regional and International resolutions to counter the crisis.

'The sources of the global financial crisis lie in the financial and other policies in the developed countries, especially the United States. Developing countries were not responsible, but they are now being affected by the crisis.  In some developing countries, the effects have been much more severe than in the developed countries.

The developing countries are being affected through various transmission routes, mainly finance and trade.  This has affected the trade balance, balance of payments and foreign reserves of some countries, and a few are already facing a new debt crisis.   The output, jobs and social development of many countries are also affected. Although much of the global news of the crisis has focused on the West, it is the developing countries which are suffering more'...