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financial crisis

G7 and G24 Meet in Washington DC

Sameer Vasta's picture

G24 Discusses Financial Crisis

The Ministers of the Intergovernmental Group of Twenty-Four (G24) met in Washington yesterday to discuss the global financial crisis and its widespread impact.

Following the meeting, they released a communique that highlighted, among other issues, the fact that the current crisis was having a "disproportionate effect on developing countries through various channels, including falling prices of primary commodities, sharply contracting exports, declining remittances, negative net private capital flows, and credit crunch affecting many countries"

You can download the full communique from the G24 meeting here.

G7 Addresses Recession and Downturn

The G7 Finance Ministers and Central Bank Governors met in Washington DC yesterday, amidst what they claim is "the the deepest and most widespread economic downturn and financial stress witnessed in decades."

You can read the full statement by the G7 here.

Meetings home in on regional impact and solutions to crisis

Nina Vucenik's picture

Regional finance ministers and development practitioners teamed up today to brainstorm solutions to the troubling economic crisis.

Young money changer on bank of Senegal River, the border between Senegal and Mauritania. Photo: Scott Wallace / World Bank Amid World Bank warnings that Africa is likely to be the worst-hit region by the global financial crisis, African finance ministers and Bank staff met today to determine the way forward in dealing with the impact of the global financial crisis on African countries.

Hosted by the World Bank’s chief economist for Africa, Shanta Devarajan, and chaired by vice president for Africa, Obiageli Ezekwesili, the meeting challenged participants to “think outside the box” in determining solutions to the negative economic, humanitarian and political effects the crisis already is having on the continent.

“The major challenge facing African countries and their development partners is how to design appropriate policies that would respond to this crisis,” Ezekwesili said.

She said sound macro-economic policies put forward by Africans over the last decade, which have, in part, led to significant growth rates, are now being questioned.

Flexibility, diversification, and regional solutions are key to combating the crisis, meeting participants agreed. Uganda Central Bank Governor Emmanuel Tumasiime-Mutabile advised flexibility of markets, of regimes, and of policies in order to stem the force of the crisis.

Development banks join together to provide funding for Latin America and the Caribbean

Sameer Vasta's picture

Pouring and weighing fresh milk. Colombia. Photo: © Edwin Huffman / World BankThis past Wednesday, leading development banks joined efforts to provide as much as US$90 billion during the next two years in a joint effort to spur economic growth in the Latin America and Caribbean region.

The Inter-American Development Bank and the Inter-American Investment Corporation, the World Bank Group (IBRD, IFC and MIGA), Corporacion Andina de Fomento, the Caribbean Development Bank and the Central American Bank for Economic Integration are all working together to explore new opportunities to protect the economic and social gains achieved in the region during the last five years.

World Bank President Robert Zoellick spoke about the importance of this joint effort:

"Latin America and the Caribbean have achieved substantial economic and social progress over the last five years and we must ensure that this is not lost because of the external shock of the global crisis. We need to avoid a social and human crisis."

For more information:

Justin Lin on developing economies at The Economist

Sameer Vasta's picture

During the G20 Summit two weeks ago, World Bank Senior Vice President & Chief Economist Justin Lin spoke to The Economist about the global financial crisis and the importance of social safety nets.

You can listen to the interview using the player below:

You can also download the interview here, or listen to it directly on The Economist website.

Bank’s youth blog looks at impact of financial crisis on young people

Angie Gentile's picture

How is the financial crisis impacting youth around the world? Youthink!, the Bank’s website dedicated to kids and young adults, asked its cadre of youth bloggers from around the world to answer that question.

"Even if the situation ahead of us is really bad, what good would it do to stress about it? It’s more productive to focus on the good things and keep on working towards our goals as a society…" said contributing blogger María Rodríguez of Colombia.

Bringing together seven young bloggers from across the world, the Youthink! blog features posts about topics as wide-reaching but impactful as climate change to health in the developing world. Since launching in January 2009, Youthink! bloggers have managed to spark lively debates and discussions among the site’s audience.

The first batch of Youthink! bloggers are:

 

A 2006 Webby Award winner, Youthink! aims to inform youth on development issues and inspire them to get involved. The site contains a section for educators, and most of the content is now available in French, Spanish, and Chinese.

Critical investments in safety nets to rise

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Ngozi Okonjo-Iweala, World Bank Group Managing DirectorIn light of the global economic crisis, the World Bank announced today that its investments in safety nets and other social protection programs in health and education are projected to triple to $12 billion over the next two years.

Additionally, the Bank also increased its fast track facility for the food price crisis to US$2 billion from US$1.2 billion. As World Bank Group Managing Director Ngozi Okonjo-Iweala explains:

"The continuing risky economic environment, combined with continuing volatility for food prices, means for poor people the food crisis is far from over. Many poor countries have not benefitted from some moderation of food price spikes in global markets. The decision to expand the facility will help ensure fast track measures are in place for continued rapid response to help countries."

More information about today's announcements:

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