Nations around the world are currently confronting an unprecedented financial crisis triggered by the collapse of the US subprime mortgage market. Despite extensive support from governments and monetary authorities, the financial meltdown has already taken a heavy toll on the world economy, with more economic hardship predicted for the immediate future. The crisis came at a time when the leading G7 economies were already slowing due to skyrocketing energy and commodity prices. Developing countries, and in particular the least developed, already reeling under sharp hikes in food and fuel prices, now face the daunting prospect of losing hard-won gains in economic development, poverty alleviation, and political stability.
Copyright © Canadian International Council 2009
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