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Abstract

The current economic crisis has indeed had far-reaching consequences beyond the “developed world” where the crisis originated. Yet, significantly, the impact of the crisis on the “developing world” has varied quite considerably. While parts of sub-Saharan Africa may have suffered as a consequence of rising food prices and reduced aid flows, other regions have fared considerably better. It is too early to talk about the decoupling of “frontier markets” (to use investment analyst jargon) from developed markets. Yet the solid performance of most Latin American and Asian economies in recent years raises interesting questions regarding the international economic system and the prospects for reducing poverty levels for large sectors of the population of the developing world.

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