What We’re Reading 3/31/09

Mar 31st, 2009 4:18 PM UTC
By Steve Wilson

Washington Post—Developing Nations Set to Get More Say
At this week’s G20 summit, the Washington Post writes the big winner will be the developing world, with the United States, Europe and Japan offering China, India, Brazil and other emerging nations unprecedented new influence in global financial decisions. At the summit, leaders are expected to back the addition of 10 developing countries to a key economic council in Switzerland that has long operated as a club of rich nations. This will grant them a platform to help revamp and supervise global financial standards. Several major developing countries are also in late-stage negotiations to win new authority to shape decisions at the Washington-based International Monetary Fund, an organization that developing nations have long complained dictate to them rather than hear them out.

AP—Africa seeks shelter from global meltdown
Africans and international activists are hoping that G20 leaders turn their attention to poor nations, in addition to their own, richer economies. The AP writes that Africa’s exposure to the global meltdown is fundamentally different to that in developed countries: its economies are mostly based on hard cash, so lack of bank liquidity that translates into lower lending isn’t the main problem in Africa. Instead most African countries are suffering from depressed global demand for the natural resources. Also hurting the continent’s economy: The drying up of crucial direct investment from overseas; a drop in remittances sent back home from Africans abroad, and; an expected drop in direct aid from richer nations.

AP—World Bank: Growth in developing world expected to slow to 2 percent
The deepening global recession means growth in the developing world will slow to 2 percent this year, according to the World Bank, which predicts that economic activity will remain depressed for the next two years. Back in November, the World Bank estimated that the gross domestic product — a total output of goods and services — in the developing world would grow by 4.4 percent this year. Rapidly deteriorating financial and economic conditions around the world, however, prompted the World Bank on Tuesday to revise its estimate sharply lower.

AP—Big slide in global trade looms over G-20 meeting
With global trade sliding, analysts say the G20 may need to offer more than just ritual support for open markets when they meet this week if they are to steady a teetering economy and avoid a damaging retreat to protectionism. With no concerted strategy for a revival, some economists say a rash of go-it-alone stimulus packages and industry bailouts could lead to trade wars, causing havoc in one of the key driving forces to the world’s economic growth. The World Trade Organization says most of the major powers , from the United States and European Union to China and India, have erected new barriers to imports in the form of tariffs, subsidies or other measures designed to protect domestic industries.

NY Times—Haiti’s Woes Are Top Test for Aid Effort
A bevy of leaders and activists have descended on Haiti this month, including Ban Ki-moon, the United Nations secretary general, and the entire Security Council. All of them came to stress that this destitute nation stands at a crossroads between salvation and “the darkness,” as Mr. Ban put it. The New York Times writes that Ban is trying to turn Haiti into something of an ‘Exhibit A’ on the need to keep foreign aid flowing to the world’s poorest nations, despite tighter budgets.

-Steve Wilson

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