WP 542 Where the financial and economic crisis does bite. Impact on the Least Developed Countries / by P.A.G. van Bergeijk
ISS Working Paper by Peter A.G. van Bergeijk
Author's abstract
This paper looks beyond the comparatively good performance of the large emerging economies that gave rise to the mainstream narrative of decoupling.
I discuss the negative economic and social impacts of the financial and economic crisis on the Least Developed Countries that the mainstream narrative hides below the veil of well performing large countries. The negative macroeconomic consequences are directly observed in a reduction of the foreign contribution to capital formation in LDCs and a deceleration of the growth of per capita Gross Domestic Product. Official Development Aid does not offer recourse contracting in real terms in 2011 and falling short by US$ 51 billion over 2008-2011.
The potential implications for human development are important. The paper indicates that Millennium Development Goals (especially in the fields of poverty, child mortality and universal primary education) will be more difficult to attain in the Least Developed Countries.
Keywords
Crisis, Least Developed Countries, official development aid, foreign direct investment.
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About the author
| Peter A.G. van Bergeijk is Professor of International Economics & Macroeconomics, at the International Institute of Social Studies (ISS). Over the last year he completed books on the Gravity Model in International Trade (coedited with Steven Brakman for Cambridge University Press), The World Trade Collapse (for Edward Elgar) and The Financial Crisis in Relation to Development (co-edited with Rolph van der Hoeven and Arjan de Haan for Edward Elgar). Presently he is working (as a guest editor) on special issues for The Hague Journal of Diplomacy (Economic Diplomacy), De Economist (micro data) and The Journal of International Trade and Economic Development (on firm heterogeneity and development). His research in progress deals with: regional trade agreements in Africa, competition policy in China, success and failure of economic sanctions, econometric analysis of the 1930s and 2008-9 world trade collapse, meta-analysis of economic diplomacy, and meta-analysis of firm heterogeneity and development |
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Publication date: Wednesday, 16 May 2012
