Launched in April 2006, the Commission on Growth and Development brings together twenty-two leading practitioners from government, business and the policymaking arenas, from developing and industrialized world. The Commission is chaired by Nobel Laureate Michael Spence, former Dean of the Stanford Graduate Business School, and Danny Leipziger, former Vice-President, World Bank, is the Commission's Vice-Chair. Learn more »
A Special Report of the Commission on Growth and Development on the Implications of the 2008 Financial Crisis
The current crisis has raised a number of questions about the best strategy for achieving sustained growth and poverty reduction in developing countries, foremost among them whether the failure of the financial system also signifies the broader failure of market-oriented capitalist systems. The Growth Commission looks at this issue in its new report on Post-Crisis Growth in Developing Countries, and believes that the crisis was not a failure of market-oriented systems, and that an outward-looking strategy, as suggested in the original Growth Report, remains broadly valid. This strategy, however, may not be as rewarding as it was in the years before the crisis, as the world economy that emerges from the upheaval may be marked by slower growth in trade, costlier capital, and a more inhibited American consumer.
The following questions are discussed in the Special Report:
- How has the economic landscape changed in the wake of the financial crisis of 2008?
- What factors contributed to the onset of the financial crisis and its transmission from advanced to developing countries?
- Should the crisis be interpreted as a failure of financial-sector regulation or as a broader failure of market-based systems?
- What effects will the financial crisis have on the prospects for economic growth in developing countries?
- How will the crisis impact the formulation of developing country growth strategies going forward?
- What is the outlook for free trade and a growth model that capitalizes on the global economy?
- How do actions by the advanced economies in response to the crisis affect the choices of policymakers in the developing world?
- What is the appropriate role of government in the post-crisis economy?
- How will the lessons of the crisis affect strategies for financial-sector development in developing countries?
- What are the prospects for improved international oversight of global finance and cross-border financial flows?