Summary (English)

In the wake of the food, fuel and financial shocks, a fourth wave of the global economic crisis began to sweep across developing countries in 2010: fiscal austerity. Serving as an update of earlier research by UNICEF, this working paper:

1. examines the latest IMF government spending projections for 128 developing countries, comparing the three periods of 2005-07 (pre-crisis), 2008-09 (crisis phase I: fiscal expansion) and 2010-12 (crisis phase II: fiscal contraction);
2. discusses the possible risks for social expenditures;
3. assesses the most common adjustment measures being considered by developing countries in 2010-11 and their potentially adverse impacts on vulnerable populations; and (iv) summarizes a series of alternative policy options that are available to governments to expand fiscal space and ensure a Recovery for All, including children and poor households.

Related info

See also: Identifying Fiscal Space. Options for Social and Economic Development for Children and Poor Households in 182 Countries, UNICEF, 2011.

Note

Inclut le Résumé analytique en français.

Incluye el Resumen Ejecutivo en español.