It’s great that the global economy is benefiting from economic reform, but what will this mean for developing countries, such as Egypt? According to World Bank Officials, it might spell bad news. CFO of the World Bank Vincenzo La Via claimed that “solutions for advanced economies are not necessarily a good fit for developing countries.” It is simply counterproductive to “impose one-size-fits-all solutions.” What has happened is that developing countries have been “overlooked” vis-à-vis attempts to protect top banks around the globe. This is why La Via feels that developing countries need a larger input into Euro-US regulators and globalize accounting standards. "If developing countries' concerns are not taken into account, they will have little incentive to adopt them. This could provide opportunities for regulatory arbitrage, with riskier financial transactions moving to the least-regulated markets," he said.
Developed Countries Boost Developing Neighbors
Indeed, the more developed countries help their developing neighbors, the better off the global economy and political arena will be. Australia for example, will be increasing aid to Egypt to “ensure a smooth transition to democracy and support its economy” following the uprising that removed Mubarak from his reign. Indeed, Kevin Rudd (Egypt’s foreign minister) pointed out the country’s potential frailty if global action is not taken to stabilize the country. This would even impact Australia! Should Egypt not have a successful democratic revolution, Australia could face “terrorism, regional instability and higher oil prices.” This matter will be discussed between the Prime Minister of Australia and America.
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