How is the Credit Crunch Affecting the Least-Developed Countries?
Nobody has much doubt that the least-developed countries (LDCs) will suffer significantly from the financial crisis and the global economic slump. Even if, so far, the impact has not been as great as that in developed countries, any damage to already fragile economies can be disproportionately severe in social and business terms. Certainly the economic situation of the LDCs will worsen before circumstances improve. With much of the political focus on the OECD area – including unprecedented efforts to bolster the financial sector as well as massive economic stimulus packages – little attention is being paid to the plight of poorer nations in the wake of the broader crisis. AITIC has tried, in this note, to tie down some of the ramifications for LDCs in the trade and development sector. Data is neither clear nor always current. Further, almost every forecast made since the US recession started a year or so ago has proved over-optimistic. Hardly a day goes by without a new estimate that t
