Abstract
The global financial crisis, triggered by the collapse of Lehman Brothers in September 2008 in the United States, started a contagion that pushed the world economy into deep recession. Not since the Great Depression of the 1930s, had the world economy witnessed such a massive reduction in gross domestic product (GDP) and a sharp drop in real growth. The proximate cause of the crisis lay in the US sub-prime housing market, whose collapse led to a run in shadow banking, debilitating confidence in financial institutions in the US and across the world.
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Notes
- 1.
Real GDP for Advanced economies declined from 2.7 % in 2007 to (3.8) % in 2009. Growth in Asian economies declined from 5.7 % in 2007 to (5.6) % in 2009. World GDP growth has remained steady at 3–3.5 % since 2011–14 (IMF, World Economic Outlook, October 2014).
- 2.
The G20 declared victory over the crisis at their third summit at Pittsburgh in September 2009 (Callaghan et al. ‘Global Cooperation Among G20 Countries’).
- 3.
Louvre Accord 1987; Plaza Accord 1985.
- 4.
Ibid.
- 5.
An example is the experience of bankruptcy of Iceland’s banking system that collapsed when three major Icelandic banks growing rapidly overseas slipped into insolvency and Iceland was unable to honour the obligations of its banks.
- 6.
G20 Factsheet on Food Security, G20 Civil Process in Russia accessed on November 19, 2014 available at http://www.g20civil.com/documents/195/944/.
- 7.
The World Food Summit (1996) states that “food security exists when all people, at all times, have physical and economic access to sufficient, safe and nutritious food that meets their dietary needs and food preferences for an active and healthy life”.
- 8.
NSSO consumption survey (2011).
- 9.
NSSO data shows leakages in states like Bihar as high as 71 percent in 2009.
- 10.
Almost 85 % of these 1.5 billion people dwell in rural areas.
- 11.
IEA Database.
- 12.
‘Analysis of the Scope of Energy Subsidies and Suggestions for the G20 Initiatives’, IEA, OPEC, OECD, World Bank Joint Report prepared for submission to the G20 Summit Meeting in Toronto (Canada), June 2010.
- 13.
Joint UNCTAD-OECD Reports on G20 Investment Measures.
- 14.
‘Jobs’ World Bank Development Report (2013).
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© 2016 Indian Council for Research on International Economic Relations
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Kathuria, R., Nagpal, N.K. (2016). Introduction. In: Kathuria, R., Nagpal, N. (eds) Global Economic Cooperation. Springer, New Delhi. https://doi.org/10.1007/978-81-322-2698-7_1
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