Mar 2, 2011, 1:01 PM
On the assessment of the impact of the crisis on the poor
and most vulnerable of the world, it is discerned that the economic crisis is
projected to increase poverty beyond 46 million people in 2009. It is projected
also that the principal transmission channels will be through employment and
effects of wages as well as declining remittance flows. According to World Bank
sources, employment and wages will shrink and will unfavorably affect immigrant
and other remittances to poorer countries. According to the Bank's report,
estimates from the Ministry of labor of
The report also shows that third world workers are
increasingly shifting out of dynamic export-oriented sectors into lower
productivity activities and moving from urban back to rural areas. The
assessment is that these trends are likely to jeopardize recent gains in
Furthermore, a major decline in remittance and opportunities for migration, are also undermining poverty gains and bringing down wages to insignificant, unattractive levels. Falling employment and wages in turn prevent households from providing adequately for food and basic necessities. The Report concludes that the declining growth combined with high levels of initial poverty have left many households in developing countries highly exposed to the crisis. In this connection, the Bank estimates that of 116 developing countries, 94 have already experienced decelerating growth, of which 43 experience high levels of poverty.
The situation therefore demands re-arrangement of spending needs and public spending.
Among the West African countries affected, the
The major weapon against the crisis for many African
countries is control and prioritizing of public spending. The
"It's a recession when your neighbour loses his job; it's a depression when you lose your own."
Harry S Truman