Publication

This brief lays out the conceptual case for a broad range of activities by the multilateral development banks (MDBs) to help developing countries manage risk. The authors argue that since early 2008 most developing countries are confronting sharp upticks in both financial market volatility and inflation as well as the likelihood of a steep drop in global growth. Though volatility did not originate in developing countries, the authors argue, they have been hard hit. According to them, poor countries heavily dependent on commodity-based exports, or exports generally, face the prospect of a serious negative shock in external demand.