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GLOBAL ECONOMIC CRISIS AND ITS IMPACT ON EMERGING COUNTRIES



The accelerated deterioration in global economic activity that has been experienced by the major developed nations, whose effectshave been reflected in trade, global financial flows, and have generated a high volatility and uncertainty of markets and consumers are some of the problems currently facing the global economy betweenthe notorious difficulties to adopt policies that allow correct imbalances from United States and the European Union.

As the European Union (EU) and the American United States (USA) are the world'slargest economies and are deeply interconnected, their problems easily affect simultaneously each of them also that this situation is developing important implications for countries in development,which are being affected through trade and financial side

According ads United Nations organization (ONU), there are clear risks that could worsen global economic activity; emerging nations arelikely to receive significant negative impacts on the most pessimistic scenario. The impacts will vary depending on the economic and financial ties they have with the major developed economies. In thisregard, most developing countries is in a contradictory situation. First, need protection from the volatility of commodity prices and external financing conditions through macroeconomic policies somewhatrestrictive and by accumulating reserves, thus contributing to reduced aggregate demand at global. On the other hand, developing nations need to boost investment to sustain high growth rates andreorient their economies to achieve a greater reduction in poverty levels and production patterns more sustainable.

Now, the concern about the crisis and its future have forced investors to seekmarkets with less risk, and emerging and being more selective about the fate of their resources. There are 2 groups of CIVETS emerging countries (Colombia, Indonesia, Vietnam, Egypt, Turkey and South...