Global economic crisis
The effects of the global economic crisis have been felt around the world and we’re all tightening our belts. And the poor countries, who did nothing to cause the crisis, are feeling the effects.
Imagine for a minute that you’ve already spend 80% of your income on food – even the slightest price increase or drop in your income could mean you go without food for a few days. What would you do?
Credit crunch, financial crash, recession, global downturn – whatever you choose to call it – the economic crisis that began in 2008 set in motion a troubling chain of events.
As global markets collapsed, there was far less money to go round. People all over the world bought less stuff. Developing countries’ exports fell and millions of jobs disappeared.
This crisis has created a financial ‘hole’ for the 56 poorest countries, mostly in Africa. Zamia has slashed its health spending, while Niger and Mali have taken the axe to their schools budget. Middle income countries like China, India, Brazil remain relatively unharmed. The World Bank estimates that two million children will die as a direct impact of the crisis.
Poor people are struggling – but they’re toughing it out, fighting to drag themselves out of poverty. But the credit crunch is not over yet and the impact of this downturn will hit them harder and longer.