The impact of the global financial crisis on developing countries—lessons and challenges ahead
Dr Dirk Willem te Velde, Director of Programmes, IEDG, ODI
IMF Delegation - Roger Nord (African Department), Dominique Desruelle and Christian Mumssen (Strategy, Policy, and Review Department)
Professor L. Alan Winters, Chief Economist, DFID
Dr Ngaire Woods, Fellow in Politics and International Relations, University College Oxford
A senior delegation of IMF staff are taking part in a one-week visit to Europe where they intend to gather input for a paper on exit strategies for LICs after the crisis, the post-crisis financial architecture and development challenges. The global economic crisis has had a severe impact on low-income countries. The IMF has aimed to cushion the shock of the global economic crisis on LICs by significantly scaling up its liquidity support in 2009, accommodating countercyclical responses, increased program flexibility, and reforming its low-income country instruments. One challenge for low-income countries now is to restore economic growth and sustainable macroeconomic positions in the wake of the crisis.
ODI is hosting a roundtable meeting which focuses on questions related to near-term fiscal, monetary and exchange rate policies, debt sustainability considerations, and linkages to global trends. It will also be an opportunity to exchange views on the post-crisis development finance architecture, including the need to manage future volatility, the investment-debt-growth nexus, prospects for scaling up of aid, challenges related to climate change, and the role of investment flows from large emerging markets.