Global Crisis Forces African Governments to Turn to IMF

Years after graduating from dependence on the International Monetary Fund, many African countries are having to call upon the fund for assistance to cope with a global economic crisis that is not their fault, Reuters reported. The international economic turmoil has been slower to reach Africa because of its limited financial links to the outside world. But now, African economies are struggling against collapsing demand for their products, volatile commodity prices and falling foreign investment. IMF Managing Director Dominique Strauss-Kahn describes Africa as "an innocent victim of this global financial tsunami." The crisis has also come on the heels of last year's unprecedented rise in world food prices, which pushed more of the world's people deeper into poverty, threatened to increase social unrest and squeezed government budgets. Read more.
Location