P. 1
The Financial and Economic Crisis of 2008-2009 and Developing Countries

The Financial and Economic Crisis of 2008-2009 and Developing Countries

|Views: 69|Likes:
Published by SIU

More info:

Published by: SIU on Sep 20, 2011
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

11/11/2011

pdf

text

original

The slowdown in economic activities in Africa since the onset of the
crisis has had a negative impact on poverty. According to recent estimates

by the United Nations Department of Economic and Social Affairs
(UNDESA), the number of people in the region living below the poverty
line of US$ 1.25 a day grew by 14 million between 2008 and 2009 (United
Nations, 2009). One of the channels through which the crisis has affected

poverty in Africa is from falling government revenues in several countries

Table 4

net odA dIsbursement by All donors

(Billions of dollars)

Recipients

200020012002200320042005200620072008

Africa

15.6

16.8

21.8

27.3

29.7

35.5

43.5

39.1

44.0

All developing
countries

49.8

52.3

60.9

71.1

79.4108.0106.1107.1128.6

Source: OeCD-DAC database.

afrIca and the global fInancIal and econoMIc crISIS217

since the crisis began. Recent estimates indicate that in sub-Saharan Africa
government revenue (excluding grants) fell from 25 per cent of GDP in 2008
to 21 per cent in 2009. Revenue declines of this magnitude reduce the ability
of governments to fnance health, education and infrastructure projects, thus

inhibiting poverty alleviation efforts. The crisis has also affected poverty
through an increase in unemployment. It is estimated that the unemployment

rate in sub-Saharan Africa increased from 8 per cent in 2007 to 8.2 per cent
in 2009,2

and in North Africa it increased from 10.1 per cent to 10.5 per
cent (ILO, 2010). There has also been an increase in the share of workers in

vulnerable employment as well as in the share of the working poor in total
employment.3

In sub-Saharan Africa, between 2008 and 2009 the share of
workers in vulnerable employment increased from 76 per cent to 77 per

cent, and the share of the working poor in total employment increased from

59 per cent to 64 per cent (ILO, 2010).

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->