Though today's financial crisis began in the world's richest nation, there is good reason to worry about how it will affect the world's poor. A recent series of posts explores the implications. The contagions of freeze-up and slowdown will spread through many channels: trade, investment, migration, and more.
CGD Policy Blogs
If Foreign Aid Contracts, AIDS Treatment Jobs are a Safe Bet (Development Impacts of Financial Crisis)
Among the likely but unanticipated consequences of the U.S. financial crisis: AIDS treatment jobs could become a "safe haven" for people whose current employment depends on foreign assistance funds that are currently expended for other purposes.
U.S. Financial Crisis Will Mean Slower Growth, Rising Inequality in Developing World (Development Impacts of Financial Crisis)
For many developing countries, the U.S. credit crisis will mean slower growth and rising inequality. The effects will be protracted, and not all will show up at the same time. And the nature and degree of impact will vary widely. Some countries, notably those with extensive foreign exchange reserves and strong fiscal positions, will be much better able to cope than others. But overall the crisis is very bad news for developing countries and especially for the poor.
The Republican National Convention in Minneapolis-St. Paul, like the Democratic National Convention in Denver the preceding week, featured high-level side events on global poverty. Despite a much smaller audience and far fewer international attendees in Minneapolis, global poverty made a brief appearance on center stage at the Republican convention.