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Global Financial Crisis: How should South Asia respond?

Sadiq Ahmed's picture

The global financial crisis hit South Asia at a time when it was barely recovering from a severe terms of trade shock resulting from the global food and fuel price crisis.The food and fuel price shocks had badly affected South Asia, with cumulative income loss ranging from 34 percent of 2002 GDP for Maldives to 8 percent for Bangladesh. Current account and fiscal balances worsened sharply and inflation surged to unprecedented levels.

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Submitted by BradyU on
Its really alarming that the global financial crisis hit South Asia at a time when it was barely recovering from a severe terms of trade shock resulting from the global food and fuel price crisis. In relation to food crisis did you know what is Red Plum? It is not a fruit / food but a website chock full of online coupons and tips on how to save on food and other items, and you don't need personal loans in order to join. These coupons are free of charge. All you need to do is enter your zip code, and you’re good to go. They give you coupons and other deals that are available in their site. Just choose the one you want, and print it. The Red Plum might just save you from availing your personal loans for food. I do believe that in order to survive in times of hard life all we need to do is help one another and ask for God's guidance.

I am so sad about this. The food and fuel price shocks had badly affected South Asia. I hope that your country can recover on it. link

For political reasons, South Asia will see an increase in deficit spending despite the fall in food and oil prices. India is heading for elections next month, and with the Bahujan Samaj Party more empowered, expect an increase in the social security net. Both Bangladesh and Pakistan will invest more in security. Bangladesh will extend benefits to security forces (incl. subsidies) in the wake of the recent mutiny. All this will constrain the fiscal space further. Jalal Alamgir, Ph.D. http://localandglobal.wordpress.com/

Submitted by blenk on
We all remember the Asian financial crisis in 1997. The current financial crisis is no longer the Asian it has global dimensions. Born over the ocean, in the United States, it extends to the entire world, embracing all the new countries in Europe and Asia. According to Seoul, to overcome its negative consequences are required the coordinated efforts of the entire world community.

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