As the developed countries focus on stimulus packages for their own economies and withdraw capital from foreign markets, it is necessary for them to realize that developing countries should also be protected in order to facilitate a global recovery.
A World Bank report warns that 129 developing countries are facing an investment shortfall of 270 to 700 billion US dollars this year and international institutions alone can not fill the gap.
"This global crisis needs a global solution and preventing an economic catastrophe in developing countries is important for global efforts to overcome this crisis," World Bank President Robert Zoellick said.
An economic catastrophe may have yet to reach the developing world since the waves of the crisis have not entirely hit ashore far away from where they were generated.
In the coming time, the developing countries with lower anti-risk capabilities, especially the rising economies, may have to stand up to larger and more devastating impacts.
Compared to the developed countries that can withstand the crisis with strong economic power, most of the developing countries lack the resilience to sustain risks because of their simplified economic structures and incomplete financial systems.
The sharp fall in foreign trade and investments of the developed countries will leave the developing countries to bear much more of the brunt during the crisis, said Justin Yifu Lin, World Bank chief economist and senior vice president.
The impact of the financial crisis is gradually taking effect in the developing countries.
On the one hand, the Institute of International Finance (IIF) warned of cut-off capital flows to the rising markets this year. On the other hand, the IIF warned that falling overseas demand and rising protectionism in some developed countries has already made worse the situation in some exports-dependent developing nations.
For the best way to ease the damage, Lin urged developed countries to spend a portion of their stimulus plans on developing countries.
"Channeling infrastructure investment to the developing world where it can release bottlenecks to growth and quickly restore demand can have an even bigger bang for the buck and should be a key element to recovery," Lin said.
In view of the increasing globalization, developed countries should fully realize that reducing the impact of the global recession on developing countries is also helping themselves.
The stable growth of the developing economies will actually provide more opportunity for the recovery of the developed ones, which otherwise could face additional difficulties.
Thus, it is important for the developed countries to keep an eye on protecting the developing economies while searching for a breakout from the current crisis.
Concretely speaking, it is important for the developed economies to shoulder their responsibilities, reduce the impact of the crisis on the whole world, help the developing countries maintain financial stability, and provide in-time aid to those that are in need.
It is also important for the international community to make more of an effort at reducing poverty, especially in the least-developed countries. The developing economies should also open up new space for development by complementing the advantages of one another.
(Xinhua News Agency March 10, 2009)