Postcrisis Growth and Development: A Development Agenda for the G-20: Overview
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Figure 6. Developing and High-Income Countries’ Share of World Net FDI, 1980–2008 100 90 80
percent
70 60 50 40 30 20 10 0 1980
1990
2000
2008
year G-20 high income non–G-20 middle-income China
non–G-20 high income G-20 developing (excluding China and India) India
Source: Staff calculations based on World Development Indicators.
toward developing countries, in particular developing-country members of the G-20, the nine middle-income countries in the G-20 continue to face major development challenges. With large concentrations of poverty (table 1), they are home to 54 percent of the world’s extreme poor (58 percent based on a $2-a-day poverty line) and account for more than half the estimated increase in global poverty resulting from the crisis. Moreover, several of these countries, based on trends to date, are not on track to achieve some of the Millennium Development Goals (figure 7). An estimated 64 million more people in developing countries will be living on less than $1.25 a day (76 million more on less than $2 a day) in 2010 because of the global economic crisis. Even by 2015, the number of additional poor attributable to the impact of the crisis could be 53 million and 69 million, respectively, based on these two poverty lines (World Bank 2010b). In addition, growth contractions are particularly damaging for human development because the deterioration during downturns is larger than the improvement during upturns and the full severity of
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