A global financial and economic convulsion of the magnitude we have just experienced should offer valuable lessons. The December 2009 of Development Outreach, “Growing Out of Crisis,” offers a multifaceted picture that sheds new light on the impact of the crisis from different perspectives and in different parts of the world, and discusses changes at national and international levels that would better protect us from the next crisis.
As the world is showing signs of recovery from the global financial crisis, countries and businesses must more than ever show caution and follow best practices in order to fully recover from the effects of the crisis and maintain sustainable growth.
On September 24-25, twenty world leaders met for the third time this year and reiterated their common goal for global cooperation on the road to recovery from the financial crisis. The G20, which includes developed nations and fast-growing emerging economies such as Brazil, China and India, accounts for about 90% of the world’s economic activity; it is quickly replacing the G8 as the leader of world economic management.
The following important points emerged during the Summit:
Ernst & Young interviewed a large of number of managers and owners of companies around the world, first in January 2009 and again in June 2009 . Companies were surprised by the speed and severity of downturn and the impact was more than expected in January 2009. Many respondents feel that the crisis has permanently changed their operating model (43%), the regulatory framework for their sector (45%) and risk management (56%). The compilation of their responses on the impact of and responses to the crisis is quite revealing.