The global economic crisis began with the United States recession and shortly thereafter a global crisis unfolded. The crisis presented concern that several sectors of the world may actually collapse in entire economic ruin, a theory that came to fruition in cases such as Greece and its economic turmoil. In response to the bank issue many central banks cut interest rates to help those that are borrowing money, among other initiatives. Until the Greece issue the most major bank collapse had been in Iceland where several other state’s banks were involved.
In 2009 the Brookings Institution stated that United States consumption accounted for more than one third of the growth in the global consumption between 2000 and 2007. In their report, the Brooking Institution announced that the United State had been spending and borrowing far too much money over the past several years for other state’s economies to be depending on the it as a long term global consumer with high demand. As a result of the tenuous economic situation, Americans began to save their money which resulted in great economic declines in other states.
States that had been developing before the economic crisis had been resigned to an extraordinary slowdown. The Overseas Development Institute reported that changes in growth in developing countries are directly related to falls in trade, commodity crisis, investment and remittances sent from migrant workers. In summary, these combined issues have resulted in a monumental increase in the number of household living below the poverty line.
The Arab world lost an incredible amount of revenue as a result of the financial meltdown. Three trillion dollars were lost by March 2009. In April of the same year, unemployment in the region was labeled as a “time bomb”. The United Nations also reported a drop in foreign investment in the region due to a decrease in the demand for oil. In June 2009 the World Bank revealed that it would be a difficult year for...