Recession’s not Over Yet (But Poor Countries are Faring Better than Expected)

Donors have been stepping in to help mitigate the effects of the global financial crisis on poor countries. But have they done enough? Some experts say no.

Dirk Willem te Velde, a program leader at the Overseas Development Institute, is one of them. The response from rich countries and international financing institutions is not enough to fill the widespread financing gaps, te Velde argues in a recent blog post.

As the World Bank’s “Global Economic Prospects 2010” report showed, poor countries need donor assistance to fund social and humanitarian initiatives. Global gross domestic product fell by 2.2 percent in 2009, the report noted – the lowest it has fallen since World War II. (One the positive side, global GDP is expected to recover up to 2.1 percent this year. And developing countries have, te Velde says, coped with to the crisis better than expected.)

But, the bottom line is: The international community still has a lot on its hands to overcome the recent economic slump.

About the author

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    Ivy Mungcal

    As former senior staff writer, Ivy Mungcal contributed to several Devex publications. Her focus is on breaking news, and in particular on global aid reform and trends in the United States, Europe, the Caribbean, and the Americas. Before joining Devex in 2009, Ivy produced specialized content for U.S. and U.K.-based business websites.