Dr Ben Thirkell-White on Global poverty and the credit crunch 16 Sept 2009. Collapse of Western excess is creating a crisis for developing countries caught in the tailwind. 2.8 billion survive on less than two dollars a day. After significant gains in the last decade, which saw GDP growing across Africa at an average of 5%, latest figures indicate this is dropped to less than 3%. The solutions are complex, will be incremental, and require action at both macro (intergovernmental) and micro-levels (individuals and NGOs assisting economic development on the ground). There is no silver bullet, but only realistic and committed action at all levels.

1. Ben Thirkell-White Politics and IR Victoria University of Wellington September 2009

3. Bubble bursts, banks panic Housing bubble bursts Banks don’t understand mortgage exposure Banks stop lending to business No new mortgages Banks stop lending to each other People feel poor People stop buying Business struggles