Global economic crisis- Survival strategies for developing economies

Abstract

From the debacle of America's toxic subprime mortgage portfolios, to the virtual freezing of credit around the world, plunging stock markets and a sustained slowdown in consumer spending, the global financial crisis that took hold in 2008 shows little sign of let up. The intensification of the global financial crisis, following the bankruptcy of Lehman Brothers in September 2008, has made the current economic and financial environment a very difficult time for world economy, the global financial system and for central banks. The down turn is not discriminating against industry sectors, making it difficult to identify areas of strength. It looks like the global economic meltdown could create a long, painful quasi-depression, a period of mass unemployment, a calamitous drop in confidence and a continued credit-squeeze. Africa, apparently, is suffering from the global financial crises. The paper provides an overview of the proximate cause of the financial turbulence and discusses the impact on advanced economies, emerging and developing economies. The role of professional accountants in helping to restore business confidence in the midst of the global economic crisis is also discussed. (N.B -The paper was presented at the Association of Accountancy Bodies in West Africa (ABWA) international conference on "Global Economic Crisis - Survival Strategies for Developing Economies" held on November 12, 2009; Dakar, Senegal).