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financial crisis

The Great Recession – Lessons from 10 Countries

Vamsee Kanchi's picture

How did developing countries fare during the crisis and what are their medium term prospects? These questions are at least partly answered in a new book covering 10 countries. Titled 'The Great Recession and the Developing Countries: Economic Impact and Growth Prospects,’ the book analyzes the  growth before, during and after the crisis of Brazil, China, Ethiopia, India, Malaysia, Mexico, Philippines, Poland, Turkey, and Vietnam.

The book’s editor, Mustapha Nabli, estimates that the average potential growth rate for the ten countries before the financial crisis was about 6 percent.  Unlike the overheated financial sector, pre-crisis trade and remittance levels were sustainable.
Once the crisis hit, however, less diversified countries really felt the heat. Their financial sectors eventually recovered, but trade remained low, thus adversely affecting their growth.  13.6 percent of Turkey’s 2009 GDP, for example, was shaved off during the financial crisis.  Possibly this was due in part to fears left over from past financial crises.

Welcome to ‘Let’s Talk Development’

Justin Yifu Lin's picture

As the world pulls out of an unprecedented financial crisis and given the wrap up just last week of the Millennium Development Goals Summit in New York, the work of the development community is far from over. In this context, the need for concerted, pragmatic research is more urgent than ever. Among the questions we need to ask is why many past efforts to get low-income countries on a path to sustainable growth have fallen short. Also, as we search for solutions, we need to adapt to the emergence of a multi-polar growth world and seek lessons from developing countries.  

With this in mind, it’s my pleasure to introduce this new blog aimed at sharing ideas and sparking innovation.

  Field visit to Nigeria
We at the Development Economics Department of the World Bank know that openness is what will keep us relevant and honest – the world is changing and it’s vital to challenge accepted wisdom. It’s essential to air the views of outside experts, even when they are highly critical.

Lively debate via this blog could potentially lead to break through solutions for development, or, at the very least, steer research and analysis in new directions.

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