Wednesday, December 17, 2008

The Present Credit Crisis and the Poor Nations

Countries fall into three broad categories bas...Image via Wikipedia

Credit Crisis and the Poor
The monetary crisis has hit us all badly and it can only get bad before coming back for all of us.Saying greed is to blame is taking an emotional stance about it. The rose petals have to become mulch before the flower starts to bloom - Basic law of transformation. However realise that this crisis is even worse for some of us than to the others.
How will the crisis affect the less developed and what will happen to the millenium goals for development. Resource rich underdeveloped countries are likely to see a contraction in their economies as the commodity prices are becoming rapidly underpriced. This could affect the amount of money available after corruption in these countries to pursue social development Agenda. Corruption is a big thing in these economies and it could only get much worse as everybody tries to grab their share of a reducing pie.
It is also more likely that the debt forgiveness program from the first world countries would also take a hit as these nations are looking to outspend the recession through radical fiscal programs. So it is likely that debt forgiveness for poor nations could take a drastic hit.

The main suggestion for underdeveloped countries is to strengthen the existing programmes under the millennium development goals and make them self sufficient. This is a real time lesson in the reality that these programmes will face once the aid nations leave. So the prescription is to strengthen the programmes. Also one should ensure that wasteful expenses are taken out. A system of frugality should be institutionalised to prevent waste of much needed money.
Also Strengthening the traditional system of commerce unique to each culture must be given a boost so that the effects of the meltdown of the Modern commerce system will be compensated by the traditional system of commerce. The traditional systems of commerce have a lot more trust and also compensate well. so the traditional system of commerce should be given a boost.
1. Strengthen the programmes under the millennium development goals
2. Ensure Frugality in the program management
3. Give a boost to traditional commerce channels
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