Blasting rich countries for turning the world into “a gigantic casino,” Brazil’s president joined with leaders from India and South Africa in urging that emerging economies’ voices be heard as the world grapples with the unfolding financial crisis.
Across the developing world, there is a growing resentment that a crisis hatched by the rich is coming home, to be borne by the poor.
“We are the victims of a crisis generated by the rich countries,” said Brazilian President Luiz Inacio Lula da Silva at the third summit of leaders of the three major emerging-market countries.
“It is unacceptable that a group of speculators would turn the world into a gigantic casino and tell us how we should run governments,” he added.
India, Brazil and Africa have little to no direct exposure to the toxic mortgage-backed securities that spawned the current crisis, but they are suffering collateral damage in the form of tight credit, plunging currencies, tanking equity markets, slowing growth and falling commodities prices.
Across Africa, the turmoil has provoked fears of declining investment, aid, tourism, exports, and remittances. Among those hardest hit are Zimbabweans caught up in an economic and political crisis that has forced a third of the population to flee the country and left many of those remaining dependent on remittances from abroad.
And now the fingers starting pointing in all directions trying to find the culprit or at least someone to take the rap for an approaching world recession.