The Impact of Financial Crisis on Developing Countries

The paper analyses the impact of the global economic crisis of 2007–2009 on the developing countries of a sample of four counties (South Africa, India, Brazil and China). Within the context of globalisation, the evolution of the financial crisis is outlined and its impact on the global economy identified, and the main transmission mechanisms by which the crisis spread to the developing world is discussed. By contrast, although developing countries did not make this crisis, it has become all too clear that they are in the firing line when it comes to suffering its effects and the current financial crisis had a significant effect on economic developments in developing economies.