| Abstract: | This article presents ?The World Economy in 1999,? a report prepared by the UN Department of Economic and Social Affairs (DESA). It was noted in the report that 39 developing countries had gross domestic product (GDP) per capita growth exceeding 3% in 1996, compared to just 13 countries in 1999. This indicates that 32 developing countries would suffer a decline in GDP per capita by the year 2000 as compared to 14 in 1996. In addition, slow growth has been recorded at just 2% in 1998 and 1999, with only continued growth in North America and Europe keeping the world economy going. Continued slow growth was expected for the year 2000. In terms of income, commodity prices have fallen in developing countries. Net transfer of financial resources from developing countries was almost $60 billion in 1998, compared to positive flows of about $35 billion in the first half of the 1990s. Overall, the brunt of world economic slow-down had been borne by the developing and transition economies. Thus, according to Mr. Nitin Desai, it is important that there is a coordinated policy response to crisis situations, rather than expecting the crisis economies to undertake the bulk of adjustment actions. There are advantages in coordination, which should include developing countries and the Group of Seven. |
