IMPACT OF US FINANCIAL CRISIS ON INDIA AND TANZANIA

3000 Words on the Impact of the United States Financial Crisis on one of the BRICS countries, India and on one of the poorest countries Tanzania.

• Provide an overview of the causes of the economic crisis of 2008/2009
• Focus on changes in bank regulations
• Investigate the impact on poverty rates in the provided developing countries
• Address policies put into place to prevent a next crisis, again with a focus on bank regulations
• Did the financial crisis cause any poverty to India and Tanzania?
• How did India and Tanzania responded in terms of policies to the crises
• Did the United States try to help these countries to overcome their crises?

Using 3 Scholarly Articles and 3 Scholarly Books:

1. Structural causes of the global financial crisis: a critical assessment of the ‘new financial Architecture” by James Crotty.

2. Introduction to the special issue: new perspectives on regulating banks after the global financial crisis” by Judith Clifton, Myriam García-Olalla & Philip Molyneux

3. The Global Financial Crisis and Tanzania: Effects and Policy Responses” edited by Dr. H. B. Lunogelo Mr. A. Mbilinyi Ms. M. Hangi. Pubshlished by the Overseas Development Institute

Books:

1. The Financial and Economic Crisis of 2008-2009 and Developing Countries edited by Sebastian Dullien Detlef J. Kotte Alejandro Márquez, and Jan Priewe. Published by United Nations, New York.

2. World Bank Group’s Response to the Global Economic Crisis, by World Bank Publications.

3. The Global Financial Crisis, Explaining Cross-Countries Difference in Output Impact, edited by Pelin Berkmen, Gaston Gelos, Robert Rennhack, and James P. Walsh, Washington: IMF.

Answer preview

The collapsing of the financial sector in the USA started in 1929. This was a belief that the unregulated financial market became unstable as a result of fraud. Moreover, they believed that there was a lot of manipulation of the systems by the insiders who were capable of leading to political unrest, economic crises as well as causing social unrest. In an attempt by the government to regulate and protect the State against these crises, it created stringent financial regulatory systems which worked efficiently and effectively. This financial, as well as economic turbulence, resulted in a paradigm as well as the policy regimes shifts…

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