The economies of poor and middle-income countries have significantly rebounded over the last 10 years, with many showing marked progress on social indicators, according to a U.S.-based think tank.
The Center for Economic and Policy Research explained that a major contributing factor to the improved economic performance of these countries is their decision to abandon “failed policies,” such those upholding fixed exchange rates, the economics editor of the Guardian says on its “Poverty Matters” blog.
Another factor is the weakening of the International Monetary Fund, the think tank noted in its latest five-yearly scorecard on development.
“According to the think tank, in the last decade the IMF has not been the force it once was – and that has been good news for low and middle-income countries,” Larry Elliot writes. “After the Asian crisis of the late 1990s, many countries in the region took steps to build up their foreign exchange reserves to ensure they would no longer have to borrow money with strings attached.”
The center also recognized the contribution of China’s staggering growth to the trend. It noted that the country’s growth helped fuel demands in commodity-rich developing economies.
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