Saturday, October 4, 2008

What $700bn could do



The Oxfam blog points out what could be done with $700bn if it was spent on development goals rather than bailing out Wall St.

However, though, if the bailout goes go through and does stop a recession, then stopping a recession would be good for developing countries in the long-run. They would have more of an export market in the US to export to. In addition, if there was a recession, developed countries are likely to become even more stingy on foreign aid and other related expenditures. In a boom, they are likely to become more generous. As such, averting a recession could have beneficial effects on the chances of getting developed countries to live up to their international development promises.

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