Michael Mullins in Eureka Street notes:
The Economist outlines the case for directing money towards the world's poor. It argues that offering new sources of funding to developing nations makes good economic sense. It is not charity.
The Economist says that while these countries have far less fiscal room for manoeuvre than rich economies, 'they are also areas of the world where growth could rebound quite quickly, because households are not weighed down by the crushing debts typical in America and Europe'.
It is at once astonishing and heartening to consider that stimulating the economies of poor nations could kick-start the global economy.
Many of us have struggled to come to terms with the fact that the only solution to this crisis might be to put more money into bailing out the wealthy banks that caused the problem. Now that the G20 London Summit has uncovered a spirit of international cooperation, it is time for the G20 to take a few extra steps, and give currency to the idea of giving developing nations a pivotal role in remaking the world economy.
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