Since the global financial crisis erupted one year ago, the BRIC countries have launched a number of vigorous stimulus packages that have contributed much to the world’s economic stability. Some of the developing nations have helped to keep the crisis from going worse through extraordinary economic performances but many of them are still confronted by challenges such as shrinking trade and slumping domestic consumption. The developing countries must make economic reforms and tackle their structural problems so that they can make progress in the long run. To deal with the crisis, many emerging economies have employed a variety of stimulus policies to boost liquidity, investment, consumption, and economic growth. Those countries are believed to be the potential vanguard that will lead the world out of the ongoing crisis in the future. Facing export declines and deflation pressure, China adopted proactive fiscal policies and a relatively easy monetary policy in a timely fashion. China, the world’s largest developing nation, launched a 4-trillion-yuan (US$585.8B) investment program, lowered interest rates and taxes, and tried to help small and medium-sized enterprises obtain loans. With such measures, China has maintained a decent economic scene. China’s domestic investment and consumption continues to gather momentum and accelerate economic growth. Brazil also has provided tax cuts and other incentives to deal with the crisis. The measures have helped boost the sale and production of durable goods, such as cars and household appliances, and stabilized business confidence. Because of that stabilization, some analysts are now forecasting growth of more than 4% for Brazil’s economy in 2010. Due to tight controls over financial sectors and foreign investment, India largely avoided turbulence caused by the crisis. The Indian government announced in July that its emphasis for the current fiscal year would be on bolstering the agriculture sector and the poor’s welfare. The Reserve Bank of India says there are signs of recovery for India’s economy. The financial crisis has posed a number of difficulties for many emerging economies and they are bound to face numerous risks and challenges. Since the crisis began, commodities prices experienced abrupt ups and downs, jolting the emerging economies. Energy exporters like Russia and Venezuela have suffered a lot due to the destabilized market. The Russian economy declined 9.8% in the first quarter year on year and 10.9% in the second quarter, putting an end to 10 years of expansion. Venezuela and other Crude Oil rich developing nations also witnessed economic decline in the first half of this year. On the other hand, Crude Oil prices increased from US$30 bbl at the end of last year to about US$70 bbl today.
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