With global risks on the increase, effective development policy depends on a good understanding of the impact of global shocks on low income countries and the most effective policy responses. At this roundtable event, the International Monetary Fund (IMF) presented findings of their first comprehensive 'Vulnerability Exercise' for Low-Income Countries (VE-LIC). This was followed by a discussion involving ODI researchers, academics and development practitioners.
This paper contains over 20 briefings considering the role of low-income, small or vulnerable countries in the G-20 growth framework ahead of the Toronto and Seoul G-20 summits this year, 2010.
The G-20 has taken centre stage in global economic governance following its swift and decisive response to the financial crisis. But the G-20 needs to tackle unfinished business urgently; there is no clearly defined role for the private sector in the G-20 and there is no formalised way of considering the interests of the poorest countries.
This Briefing Paper suggests a new compact for crisis-resilient growth to ensure that recovery from the global financial crisis is sustainable, avoids volatility and includes the interest of the poorest countries.
Stock markets in several African countries are at risk as a result of the global financial crisis, and the implications for economic growth are worrying. Market capitalisation as a share of GDP – a better measure of the development of stock markets than changes in the share price index – has fallen more than 40% in some African economies, as shown in Figure 1. But does stock market development really matter for economic growth? People often tend to regard stock markets as glorified casinos.
