Global Economic Prospects and the Developing Countries 2000

Developing countries are now recovering from the worst ravages of the financial crisis of 1997-98. However, the recovery is both uneven and fragile, and many countries continue to struggle in the aftermath. In addition to a review of international economic developments, this report considers three areas where the crisis has had a major impact on growth and welfare in the developing world. First, the crisis has increased poverty in the East Asian crisis countries, Brazil, and the Russian Federation, and elsewhere. Chapter 2 reviews the evidence on the crisis' social impact on East Asia and other developing countries, and addresses the broader issue of the impact of external shocks on poverty in developing countries. Second, though the East Asian crisis countries are experiencing a strong cyclical recovery, severe structural problems remain. Chapter 3 outlines the depth of the problems faced by the corporate and financial sectors of these economies, analyzes the challenges facing the restructuring process, and discusses the appropriate role of government in supporting restructuring and reducing systemic risk. Third, exchange rate depreciations and declines in demand in East Asia exacerbated the fall in primary commodity prices that began in 1996. Chapter 4 examines how the most commodity-dependent economies in the world--the major oil exporting countries and the non-oil exporters of Sub-Saharan Africa--have adjusted to the commodity price cycle.

Bibliographic Details

Main Author:	World Bank
Language:	en_US
Published:	World Bank: Washington, DC 2000
Subjects:	Financial crises, Economic recovery, Poverty incidence, External shocks, Restructuring, Exchange rate depreciation, Supply and demand, Commodity prices, Labor markets, Labor mobility, Wages, Bank restructuring, Corporate restructuring, Oil exporting countries, Poverty reduction, Savings, Uncertainty, agriculture, bank deposits, banking systems, bankruptcy, bonds, capital incomes, Capital flows, Central Bank, commercial banks, Consumer price index, consumption expenditures, CPI, debt, developing countries, developing country, developing regions, developing world, development assistance, Development Economics, development strategy, domestic demand, domestic savings, economic circumstances, economic crises, Economic performance, economic progress, economic sectors, employment, exchange rate, Exchange rates, expenditures, exports, external environment, External Shocks, Financial Crises, financial crisis, financial institutions, financial sector, financial sectors, financial systems, forecasts, Global conditions, global economy, Global Trade, Gross domestic product, growth prospects, growth rate, growth rates, health services, imports, Income, income, income countries, income distribution, income groups, income inequality, Income poverty, increase poverty, inflation, informal sector, Institutional arrangements, institutional environment, interest rate, interest rates, International Labour, labor markets, liquidity, local currency, long term, long-term growth, Long-term trends, M2, macroeconomic policies, medium term, mergers, Metals, middle income, monetary policy, money supply, multilateral trade, oil, oil exporters, oil prices, OPEC, Organization of Petroleum Exporting Countries, output growth, per capita income, policy measures, policy reforms, poor countries, positive effects, poverty, poverty levels, poverty rates, Poverty Reduction, price declines, private consumption, producers, production costs, productivity, public expenditures, Public sector, Public spending, Real GDP, Real income, real incomes, real wages, risk averse, risk aversion, rural areas, safety nets, savings, smoothing consumption, social costs, social services, Sustainable Growth, Terms of trade, trade negotiations, transition economies, Unemployment, urban areas, Urban poverty, world economy,
Online Access:	http://hdl.handle.net/10986/14776
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