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ASSESSING THE IMPACT OF THE CURRENT FINANCIAL AND ECONOMIC CRISIS ON GLOBAL FDI FLOWS. United Nations Conference on Trade and Development, April 2009. This new study from UNCTAD shows that gloomy market prospects, reduced financial resources and aversion to risk already had a negative impact on foreign direct investment (FDI) flows in 2008 and that this effect could deepen in 2009. The authors note that the fall in global FDI in 2008-2009 is the result of two major factors: first, the capability of firms to invest has been reduced by a fall in access to financial resources, and second, the propensity to invest has been affected negatively by economic prospects, especially in developed countries that are hit by a severe recession. The setback in FDI has also led to a fall in cross-border mergers and acquisitions. To illustrate uncertainties and provide a framework for further discussion and analysis, this paper presents a set of three scenarios: quick recovery of FDI as soon as 2010, slow recovery beginning in 2011, and no recovery before 2012. This study can be downloaded at: http://www.unctad.org/en/docs/diaeia20093_en.pdf.
ENERGY EFFICIENCY IN BUILDINGS: A GLOBAL ECONOMIC PERSPECTIVE, Peterson Institute for International Economics, April 2009. This article looks at the economics of improving energy efficiency in the building sector. While improving efficiency in this sector would be more expensive than some studies have suggested, the author finds that the GHG abatement costs of improved building efficiency are less expensive than the abatement costs in other sectors. However, significant barriers to investment in energy efficient building will make it difficult to take advantage of these lower abatement costs, even if a relatively high price for carbon is established. New financing approaches, improved building standards, government investment, and enhanced awareness of the energy cost savings from increased efficiency are all needed to reduce emissions from the building sector and thus to assist in meeting the 50 percent reduction target. This article can be downloaded at: http://www.petersoninstitute.org/publications/pb/pb09-8.pdf.
IMPACT OF THE GLOBAL FINANCIAL AND ECONOMIC CRISIS ON AFRICA. African Development Bank Group, March 2009. This working paper assesses the effects of the recent global financial and economic crisis on drivers of Africa’s growth performance. Africa’s low level of financial integration meant that African economies were relatively isolated from the direct impact of the financial crisis. Thus, Africa found itself shielded from the impact of the 2007 subprime and the summer 2008 banking crises, avoiding the negative effects of a financial crisis that affected the very foundations of international financial markets. Most African financial markets experienced contagion effects, resulting in large losses in value and capital outflows. Overall, Africa is expected to move from a budgetary surplus accounting for 2.3 percent of GDP in 2008 to a budgetary deficit of 5.5 percent in 2009. The sectors most affected by the crisis will be mining, tourism, textile, and manufacturing. Enterprise failures, cancellations and postponements of projects are becoming widespread in African countries. Substantial job losses are registered, with negative effects on households’ standards of living. This working paper can be downloaded at: http://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/BAD%2096%20Anglais%20%20INTERNET%20PDF.pdf
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