The financial and economic crisis of 2008-2009 and Developing Countries

This book points to some key lessons that developing countries should draw from the crisis experience:  There is widespread awareness of a growing wedge between financial-sector growth and the real economy in many countries, which calls for a profound rethinking of past approaches to financial liberalization.  In the same way as the roles of business and the State need to be rebalanced at the national level, economic globalization requires enhanced global economic and financial governance. Its aim should be to protect countries against exogenous financial shocks and to provide for a global macroeconomic environment that is conducive to the creation and strengthening of productive capacities as a precondition for sustained growth. The macroeconomic strategies of developing countries may need to be redirected - away from a one-sided focus on inflation control and budget balance and towards greater emphasis on employment creation and active management of domestic demand.