Asia Times Online, 20 Mar 2009, Michael Klare
While the economic contraction is apparently slowing in the advanced industrial countries and may reach bottom in the not-too-distant future, it's only beginning to gain momentum in the developing world, which was spared the earliest effects of the global meltdown.
Because the crisis was largely precipitated by a collapse of the housing market in the United States and the resulting disintegration of financial products derived from the "securitization" of questionable mortgages, most developing nations were unaffected by the early stages of the meltdown, for the simple reason that they possessed few such assets.
Now, as the wealthier nations cease investing in the developing world or acquiring its exports, the crisis is hitting the less-wealthy countries with a vengeance. On top of this, conditions are deteriorating at a time when severe drought is affecting many food-producing regions and poor farmers lack the wherewithal to buy seeds, fertilizers and fuel.
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