The Developing World is Too Big to Fail

As the economic crisis spreads deeper and wider, so too do calls for various bailouts. The federal government has provided billions of dollars to rescue banks, car producers, insurance companies and other industries. Why not, then, bail out developing countries as well? So asks Kevin Gallagher of our colleague the Global Development and Environment Institute at Tufts university in an article from the Guardian. After all, if being «too big to fail» is the litmus test, then surely the Global South passes. He writes, «If the world’s developing countries aren’t part of a comprehensive global response to the crisis we will all be worse off. Rich-country stimulus plans have been too focused on their domestic multiplier effects, rather than global ones.»

Read the full article here .