Jan 2009 ILO report on global employment trends: http://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/documents/publication/wcms_101461.pdf.
Africa
Africa faces the effects of the global financial crisis with slowing demand for energy and raw materials, which have been in high demand, particularly from China for the past several years. Remittance flows have also dropped.
African Business, Credit Crunch Looms over African Boom: http://www.africasia.com/africanbusiness/ab.php?ID=1978. Africa faces slowing trade with China: http://www.ft.com/cms/s/0/ce697f3e-cc5e-11dd-9c43-000077b07658.html. Sub-Saharan Africa will face a slowdown in growth to under 5% in 2009, before rebounding slowly in 2010: http://issuu.com/world.bank.publications/docs/gep_2009/50.
Closely integrated countries in Africa, such as Egypt, Nigeria and Morocco have been particularly affected. Wilson Center event, Africa and the global crisis, March 2009, video and text: http://www.wilsoncenter.org/index.cfm?event_id=514020&fuseaction=events.event_summary. Impact of the Crisis on Africa, April 2009: http://www.carnegieendowment.org/publications/index.cfm?fa=view&id=22995.
Asia
Takatoshi Kato, 2009, Why has Asia been hit so hard by the global economic and financial crisis?, http://econ.tu.ac.th/archan/rangsun/ec%20460/EC%20460%20Readings/Global%20Issues/Sub-Prime%20Financial%20Crisis/Academic%20Works%20By%20Instituion/IMF/Why%20Has%20Asia%20Been%20Hit%20So%20Hard.pdf.
CHINA: Sara Hsu, IC2 Institute, UT Austin, Levy Institute and GEM-IWG Conference in July 2009: The crisis has affected China's rural poor, as rural migrants in China's eastern coastal region return home and total rural income is thereby dramatically reduced. This is apparent both from survey statistics and from anecdotal evidence.
China's exports were strongly affected, slowing growth until a $586 billion stimulus package was implemented: http://www.telegraph.co.uk/finance/economics/3415382/Chinas-10-steps-to-boost-its-economy.html. Much of this repackages previous allocations, however. But China is also loosening the money supply, reducing interest rates and reserve requirements: http://www.chinadaily.com.cn/opinion/2008-11/28/content_7249901.htm, http://www.ft.com/cms/s/0/c501b5ae-d034-11dd-ae00-000077b07658,dwp_uuid=4034778a-37aa-11dd-aabb-0000779fd2ac.html.
After the crisis, China's unemployment rose and manufacturing, investment and consumption decreased. Many major economic indicators—inflation, industrial output, exports and investment also fell. China’s small businesses were forced to close or adopt innovative strategies or switch to new products. Many factory owners walked away and left workers without pay. Millions of rural migrants were laid off from factory jobs. http://www.china.org.cn/government/central_government/2009-02/09/content_17249469.htm
http://www.china.org.cn/business/news/2009-02/08/content_17241801.htm.
China was the first country out of the economic crisis, July 2009: http://www.physorg.com/news168010919.html.
HONG KONG: Hong Kong falls into recession: http://news.bbc.co.uk/2/hi/business/7729652.stm. Hong Kong's Economy in the Financial Crisis, April 2009, http://www.eai.nus.edu.sg/BB448.pdf.
TAIWAN: Due to the crisis, Taiwan’s forecast economic growth rate for 2009 is 3.34 percent, a sharp decline from a forecast 5.5 percent in 2008.
INDIA: Indira Hirway, CFDA, presentation at Levy Institute/GEM-IWG Conference at UN, July 2009: The impact of crisis on informal and marginalized workers in India: Normally, 92% of workers are informal, and have no benefits of social security etc. There are 58 million informal enterprises outside agriculture. The major channels of impact on financial sector are through export markets. The export markets collapse, there is a decline in tradeable services, and migrant workers go back. Many sectors were impacted, from gems and jewelry to waste collection. In this study, the authors selected seven sectors. Employment declined and 80% of workers were affected. Available alternatives include selling assets, reducing consumption, nonworkers entering labor market, unpaid work, migration back to villages, tension, and drinking and smoking Women entered the labor force and also increased domestic work. Women’s plight is almost invisible in official statistics.
India stood face recession as the US outsources fewer jobs to the Southeast Asian country. The country had already been experiencing a credit crunch, stock market declines, and a depreciating currency. Jeremy Kahn, International Herald Tribune, Credit Crunch Ensnares India: http://www.iht.com/articles/2008/10/23/business/rupee.php. India introduced a fiscal stimulus package in the amount of $4 billion: http://www.msnbc.msn.com/id/28098382/. This helped the private sector of the economy (but not the poorer segments) to pull out of the crisis. India CBGA, April 2009 Budget Track: http://www.cbgaindia.org/budget_track.php.
JAPAN: Japanese exports fell by a record 27% in November, due to weakening demand and a sharp appreciation in the yen: http://www.ft.com/cms/s/0/2a1ae2f6-cfc9-11dd-abf9-000077b07658.html. Japan has been cutting interest rates to stimulate its economy: http://www.ft.com/cms/s/0/6acbcbbc-cd8a-11dd-8b30-000077b07658,dwp_uuid=4034778a-37aa-11dd-aabb-0000779fd2ac.html. Economic Survey of Japan 2009, Sept 2009: http://www.oecd.org/document/19/0,3343,en_2649_34111_43783443_1_1_1_1,00.html.
THAILAND: Thailand's exports slowed in November, creating economic difficulties: http://www.chinapost.com.tw/business/asia/thailand/2008/12/23/188884/Sharp-Nov..htm. The Nation, comp. September, 2009, the financial crisis has resulted in a slowdown in industrial production and has resulted in increased unemployment: http://www.nationmultimedia.com/2009/09/16/business/business_30112300.php.
SINGAPORE: Singapore's economy in recession: http://news.bbc.co.uk/2/hi/business/7741086.stm. One aspect that the global financial crisis has affected Singapore is the decline in tourism. http://sg.news.yahoo.com/cna/20090211/tap-340-spore-projects-lower-tourism-arr-231650b.html
SOUTH KOREA: South Korean leaders met for the first time on the economic crisis on January 9, 2009. Timeline of Korean crisis events: http://uk.reuters.com/article/marketsNewsUS/idUKSEO29963320090119. September 2009, South Korea recovered slowly, with big exporters doing better than small and medium sized businesses: http://www.hani.co.kr/arti/english_edition/e_business/376783.html.
NEPAL: Nepal has little to no direct exposure to the collapsing financial instruments that are bringing down major capital markets elsewhere in Asia, such as Japan and South Korea. Instead, Nepal faces a threat from within. Their own version of the housing and securities bubble, financed by recent growth in their only secondary securities market (the NEPSE) and record foreign direct investment, is worrisome. Political instability and lack of diversified markets caused all of this recent money to flow into a very narrow corridor of investments—investments which are now being called questionable, especially since foreign investment has completely dried up and the stock market has plunged (Pokharel). The Nepal Rastra Bank, their central institution, has been urged to implement an FDIC-style insurance system, but whether or not that happens remains to be seen (Rana). POKHAREL, SANTOSH. "Lessons from global financial crisis." EKantipur. <www.kantipuronline.com> Download bankcrisis.pdf (128.4K);. Rana, Madhukar SJB. "Telegraph Nepal : The Global Financial Crisis 2008: Its Economic Impact On Nepal." Telegraph Nepal::Nepal's Best News Portal. 11 Feb. 2009 <http://www.telegraphnepal.com/news_det.php?news_id=4349>.
Central Asia
Declining oil prices are expected to affect oil-exporting countries such as Kazakhstan and Russia. Economist, After the Boom: http://www.economist.com/world/asia/displaystory.cfm?story_id=12523888. October 2009, global crisis hits Central Asia, http://blogs.worldbank.org/meetings/global-crisis-hits-home-in-emerging-europe-and-central-asia.
RUSSIA: At the time the crisis hit, the Russian government owned $100 billion of mortgage-backed securities, and the country is a major oil exporter facing declining commodity prices. Investors have pulled money out of the country based on these factors and on political tensions with the West regarding a recent conflict with Georgia. In October, the Russian parliament approved a $68 billion package that would provide assistance to banks. The package focused on banks and enterprises, rather than households, April 2009: http://www.carnegieendowment.org/publications/index.cfm?fa=view&id=22999.
LATVIA: Latvia will receive a $2.4 billion rescue package from the IMF: http://www.imf.org/external/pubs/ft/survey/so/2008/CAR121908A.htm. Latvia may remain in crisis for some time, Oct 2009, http://www.marketwatch.com/story/waves-of-distrust-roll-over-crisis-hit-latvia-2009-10-07.
Latin America
LATIN AMERICA AND CARIBBEAN (LAC): Alma Espino, CIEDUR: Neoliberal policies have led to segregation and discrimination in labor markets, which have led to low wages, informal jobs, and unemployment. Women lack power and do much care work. LAC depended on prices of raw materials, external financing, and remittances when the crisis hit. There were policies that encouraged financial surpluses and effectively improved social conditions. After crisis, there is a fall in exports, and declines in remittances. Loss of jobs and income has had strong impact in Central American countries. Teresa Ter-Minassian, Effects of the Global Financial Crisis on LAC's Public FInances, 2009, http://www.eclac.cl/ilpes/noticias/paginas/7/34687/Teresa_Ter_Minassian_ppt.pdf. Jose Antonio Ocampo, 2009, Latin America and the Global Financial Crisis, http://www.southcentre.org/index2.php?option=com_docman&task=doc_view&gid=1558&Itemid=182.
One of the biggest risks to Latin America is a reversal of short-term capital inflows, since investment in US credit derivatives is not believed to be substantial enough to unilaterally destablilize the credit markets. Vitoria Saddi writes for RGE Monitor, on the US Financial Crisis and its Impacts in Latin America, http://www.rgemonitor.com/latam-monitor/253954/the_us_financial_crisis_and_its_impacts_in_latin_america.
ARGENTINA: Some necessary measures have been taken to avoid a complete and total economic collapse in Argentina. For example, President Cristina Fernandez de Kirchner wants to nationalize $30 billion dollars of in private pension funds (Foreign). This is being done in order to protect retired persons from the financial crisis. This would put an end to the private funds that were established in 1994 by Carlos Menem. Fernandez de Kirchner thinks that this is important due to the average 40% decrease in private pension funds value. There are many criticisms to this act because a growing debt will really hurt the economy of Argentina during these times. This is especially true because of the $95 billion debt defaults that Argentina was guilty for in 2001, which excluded them from international capital market involvement (PBS).
"Foreign Affairs - Argentina's Fall: Lessons from the Latest Financial Crisis - Martin Feldstein." Foreign Affairs - Home. 11 Feb. 2009 <http://www.foreignaffairs.org/20020301facomment7968/martin-feldstein/argentina-s-fall-lessons-from-the-latest-financial-crisis.html>.
PBS. 11 Feb. 2009 <http://www.pbs.org/wnet/wideangle/episodes/the-empty-atm/argentina-responds-to-global-financial-crisis/3476/>.
Argentina is recovering from the crisis, October 2009: http://en.mercopress.com/2009/10/01/argentina-recovering-from-the-global-crisis-says-world-bank.
Middle East
The crisis has affected the region's massive oil production industry. However, the Middle East has weathered the crisis through countercyclical spending: http://www.dailystar.com.lb/article.asp?edition_id=1&categ_id=3&article_id=107499.
North America
CANADA: Canadian oil producers faced declining demand and prices with the global credit crisis: http://www.reuters.com/article/GCA-Oil/idUSTRE49G6ZK20081017. Canada also entered recession, September 2009, recession's challenges to central bank: http://www.bloomberg.com/apps/news?pid=20601109&sid=afnAaXFfutS0. However, Canada's banking system has by now largely recouped losses incurred in the past two years: http://www.bloomberg.com/apps/news?pid=20601109&sid=afnAaXFfutS0.
Oceania
AUSTRALIA: Australia was strongly affected by the global financial crisis.
Zhang Mingyu. “Australian PM says Financial Crisis to Hurt Employment.” (January 1, 2009). http://news.xinhuanet.com/english/2009-01/21/content_10695745.htm. However, the financial sector proved resilient to the crisis, Oct 2009: http://thegovmonitor.com/economy/australias-financial-markets-remain-resilient-in-spite-of-global-recession-8822.html.
NEW ZEALAND: New Zealand's recession deepens: http://www.telegraph.co.uk/finance/financetopics/financialcrisis/3916404/New-Zealand-recession-deepens.html. The country recently escaped from recession, Sept. 2009: http://www.abc.net.au/news/stories/2009/09/23/2693923.htm.
