Global crisis catches up with developing countries

Developing countries,
which seemed to have
escaped the worst of
the world financial and
economic crisis, are now
being hit, with a knock-on
effect on trade and transport
volumes.
Case studies on Zambia,
Benin and Cambodia
show that “the recent
economic and financial
crisis severely weakened
the abilities of many LDCs
to maintain steady income
and spending,” a United
Nations Conference on
Trade and development
(Unctad) expert told
the organisation’s Trade
and Development Board
recently.
Both exports and imports
have fallen significantly
since the boom of 2008.
For African countries,
although showing an
increase in export revenue
overall, the bulk of earnings
is from oil, with exports
of food and manufactured
goods in particular falling.
The findings are
contained in a report
presented to the Board.
Teffere Tesfachew,
director of the organisation’s
division on Africa, said that
in Zambia “it was estimated
that the loss in mining
production and reduced
exports – which meant low
royalty payments as well as
temporary closure of some
production activities – led
the country to lose up to
22% of its government
revenue between 2009 and
2010.”
He added that the largest
copper mining company in
Zambia had reported a 40%
reduction in all supplier
contracts.
Between June 2008 and
June 2009, the total job loss
in Zambia’s mining sector
amounted to 30.4% of the
total labour force engaged
in mining.