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Twenty eight Third World countries will have to be “rescued”, according to Robert Zoellick
The financial crisis risks having an impact of the Cambodian economy, states a report of the World Bank, published on Thursday 9 October and designating 28 countries which are “vulnerable” to the inflation of food and oil products and to the repercussions of the financial crisis.
Amongst those 28 countries are Cambodia, Jordan, Lebanon, Jamaica, Eritrea, Sri Lanka and Nepal.
According to this report, most of these countries only have limited possibilities when it comes to requesting new loans allowing them to face a price increase of the food and oil products.
These countries, of which many are trying to improve the use of their natural resources as the prices are escalating, also face the risk of being affected by the “Dutch syndrome”: a strengthening of the national currency which is detrimental to the country’s productivity and to its local manufacturing industry.
According to the director of the World Bank, Robert Zoellick, the growth of developing countries could decrease to 4%, far from the average 6% observed in April 2008.
These countries often reacted to the price increase by subsidising oil products and organising free food distribution, putting their budgetary balance at risk.
According to the World Bank, a drop in the exports towards rich countries in recession could lead to the closure of companies and to a possible crisis within the bank sector.
The financial crisis risks having an impact of the Cambodian economy, states a report of the World Bank, published on Thursday 9 October and designating 28 countries which are “vulnerable” to the inflation of food and oil products and to the repercussions of the financial crisis.
Amongst those 28 countries are Cambodia, Jordan, Lebanon, Jamaica, Eritrea, Sri Lanka and Nepal.
According to this report, most of these countries only have limited possibilities when it comes to requesting new loans allowing them to face a price increase of the food and oil products.
These countries, of which many are trying to improve the use of their natural resources as the prices are escalating, also face the risk of being affected by the “Dutch syndrome”: a strengthening of the national currency which is detrimental to the country’s productivity and to its local manufacturing industry.
According to the director of the World Bank, Robert Zoellick, the growth of developing countries could decrease to 4%, far from the average 6% observed in April 2008.
These countries often reacted to the price increase by subsidising oil products and organising free food distribution, putting their budgetary balance at risk.
According to the World Bank, a drop in the exports towards rich countries in recession could lead to the closure of companies and to a possible crisis within the bank sector.
2 comments:
With result like that, I want to thank Hun Sen and his CPP for a job well done.
Is anybody can do better the answer is NO.
I hope we not the last among the 28 countries.
Again, they are simply the best.
Since the Cambodian government is breathing and living under other countries' life support (donors), thus during the global financial crisis will inevitably hit the Cambodia's economy, and it could pluge the country into chaos.
Also, there's nothing for the CPP to congratulate or pad each other on the shoulder for job well done, especially when the country is depending on foreign donations.
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