The global financial crisis and developing countries: taking stock, taking action

A year on from the collapse of Lehman Brothers and talk in developed countries has moved from recession to recovery. Recent OECD and International Monetary Fund reports suggest that financial conditions in developed countries have improved: there has been a boost in business confidence, export orders are growing, the US housing market has bottomed out and industrial production in emerging markets has begun to increase. Bolstered by successful implementation of fiscal stimuli and collective action to support financial markets, there is a new belief in the role of the state to correct market failures. But just as the financial crisis engulfed the world, affecting those who played no part in the original causes, it is crucial that any recovery from the crisis has the same global reach.