Comments on: Global Financial Crisis: Hardest on the Least Developed

By: Mehdi Shafaeddin

Mehdi Shafaeddin — Wed, 30 Jun 2010 09:08:26 +0000

Yes, such countries as Mozambique and others in Africa and elsewhere need to diversify their economies. To do so, however, they need some policy space to undertake the type of policies and measures needed. But their policy space has become limited by the International Financial Institutions,bilateral donors and WTO rules. If they also agree with finalizing EPA, under the pressure from EU, it would be the last nail in the coffin of their prospects for diversification, industrialization and development. They will be locked in the production of raw materials and other primary commodities, dependence on food imports (due to EU on US agricultural policies)and foreign aid.

By: Carlos Muianga

Carlos Muianga — Mon, 17 May 2010 12:04:11 +0000

The global financial crisis brings a more coercive task for developing countries, specially the Sub-Saharan countries. In the case of Mozambique, the crisis had not yet a great impact but, it calls the attention for changing the production and investment structure of the economy, that are mainly dependent on foreign capital, namely FDI and Aid inflows. So, the dominant opinion in the critical view, calls for a diversification and articulation of the productive base of Mozambican economy as a way to minimize the impact of future crisis, buy investing in domestic capabilities, reducing the foreign dependence and use the public expenditure to more productive areas, such as infrastructures, technological capabilities, human resources, etc.

By: SREERAM MUSHTY

SREERAM MUSHTY — Sat, 15 May 2010 07:59:53 +0000

Root cause for global financial crisis is the technic of cross border M & As in vertical motivation without much cognizance to horizontal motivation shifting capital formation from developed world to developing and LDC world. Imbalances are created. In the process big investors and owner managers of the corporate world benefitted who could lobby by establishing tax heavens and bank heavens with bilaterial treaties coupled with all possible opportunities of shifting their profits and savings into such bank heavens. A thorough research study is made by me on cross border M & As for the Institute of Chartered Accountants of India in which conclusions are drawn for possible implementation to get out of the problem of the present global financial crisis.