Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download Presentation: The Impact of the Financial Crisis on Developing Countries [PDF 378.36KB]
Document related concepts
Transcript
The Impact of the Global Financial Crisis on Developing Countries Neil McCulloch 28 January 2009 Voices from the South: The Impact of the Financial Crisis on Developing Countries www.ids.ac.uk/go/financial-crisis-impact How do the poor respond? Immediately responses • Using savings • Borrowing from friends/neighbors Responses that do long-term damage • Pulling children out of school (especially girls) • Reduced nutritional intake (especially girls) • Selling valuable (often productive) assets Policy Options For rich countries • Expand official financing – Ensure that financial flows are available, especially to vulnerable countries suffering sudden stops in private flows • Don’t cut aid – The EU countries are already well behind meeting their Gleneagles commitments of 0.51% GNI by 2010 • Conclude the Doha Round For poor countries • Protect social expenditure – Especially access to health and education services • Expand existing well targeted social protection schemes – E.g. cash transfers/workfare • Where feasible, maintain productive capital expenditure The Impact of the Financial Crisis on Aid Flows What we promised Source: OECD-DAC (2008) Are we getting there? Source: OECD-DAC (2008) How does crisis affect aid? Source: Roodman (2008) How much does aid matter? Average Share (2000-06) Private flows ODA Other official flows Total Developing Countries 84.9 19.5 -4.4 100.0 Source: Authors’ calculations from GDF (2008) Sub-Saharan Africa 38.4 65.5 -3.9 100.0 It matters much more in some places Source: Authors’ calculations from WDI (2008)
