Economic Growth in Third World Countries

In Third World countries the impact of the global financial crisis has resulted in a rebound of the slowdown experienced by developed economies, because, logically, its external dependence. There was the following:

• A decline in exports
• A reduction in remittances
• A reduction in foreign direct investment
• A drop in capital flows

To make matters worse, all this we must add two things: the raw material crisis that erupted in 2008, in the preface to the financial crisis and the effects of climate change are increasingly apparent.

Here we will further analyze the impact of economic crisis in third world countries.

We began by asking: What is the Third World?

The meaning of Third World is not geographically, but economically. This locution Sauvy coined in the fifties of last century from the idea of the third state of the French Assembly created following the French Revolution. Intended to designate countries that do not belong to any of the opposing ideological blocs in the Cold War. In practice, proved to be the income per capita lower.