Otker-Robe, InciPodpiera, Anca Maria2014-02-052014-02-052013-11https://hdl.handle.net/10986/16912Financial systems can contribute to economic development by providing people with useful tools for risk management, but when they fail to manage the risks they retain, they can create severe financial crises with devastating social and economic effects. The financial crisis that hit the world economy in 2008-2009 has transformed the lives of many individuals and families, even in advanced countries, where millions of people fell, or are at risk of falling, into poverty and exclusion. For most regions and income groups in developing countries, progress to meet the Millennium Development Goals by 2015 has slowed and income distribution has worsened for a number of countries. Countries hardest hit by the crisis lost more than a decade of economic time. As the efforts to strengthen the financial systems and improve the resilience of the global financial system continue around the world, the challenge for policy makers is to incorporate the lessons from the failures to take into consideration the complex linkages between financial, fiscal, real, and social risks and ensure effective risk management at all levels of society. The recent experience underscores the importance of: systematic, proactive, and integrated risk management by individuals, societies, and governments to prepare for adverse consequences of financial shocks; mainstreaming proactive risk management into development agendas; establishing contingency planning mechanisms to avoid unintended economic and social consequences of crisis management policies and building a better capacity to analyze complex linkages and feedback loops between financial, sovereign, real and social risks; maintaining fiscal room; and creating well-designed social protection policies that target the vulnerable, while ensuring fiscal sustainability.en-USCC BY 3.0 IGOADULT LITERACYADVANCED COUNTRIESADVANCED ECONOMIESADVERSE CONSEQUENCESADVERSE IMPACTSAGGREGATE DEMANDASSET PRICESASSET VALUESBALANCE SHEETSBANK DEPOSITSBANKRUPTCYBORROWINGCANCERCAPITAL INFLOWSCAPITAL INVESTMENTSCASH PAYMENTSCHILD HEALTHCITIZENSCLEAN WATERCLIMATE CHANGECOMMODITYCOMMODITY PRICESCONTINGENT LIABILITIESCURRENCYDEBTDEBT CRISISDEPOSITDEPOSIT RATEDEPOSIT RATESDEVELOPING COUNTRIESDEVELOPMENT ECONOMICSDEVELOPMENT POLICYDISABILITYDISEASESDISTRIBUTION OF INCOMEDOMESTIC POVERTYEARLY CHILDHOODECONOMIC ACTIVITYECONOMIC ANALYSISECONOMIC CONDITIONSECONOMIC CRISESECONOMIC CRISISECONOMIC DEVELOPMENTECONOMIC DOWNTURNECONOMIC DOWNTURNSECONOMIC GROWTHECONOMIC OUTCOMESECONOMIC PERFORMANCEECONOMIC PROGRESSECONOMIC RECOVERYELDERLYEMERGING MARKETEMERGING MARKET COUNTRIESEMERGING MARKET ECONOMIESEMPLOYMENT TRENDSEQUITY PRICESEXTERNAL FINANCINGEXTREME POVERTYFINANCIAL CRISESFINANCIAL CRISISFINANCIAL FLOWSFINANCIAL INSTITUTIONSFINANCIAL MARKETFINANCIAL MARKETSFINANCIAL RISKSFINANCIAL SECTORFINANCIAL SUPPORTFINANCIAL SYSTEMSFISCAL POLICYFOOD PRICESFOREIGN CAPITALFOREIGN CURRENCYFOREIGN MARKETSGDPGDP PER CAPITAGENDER EQUALITYGENDER PARITYGLOBAL DEVELOPMENTGLOBAL ECONOMYGLOBAL FINANCIAL SYSTEMGROWTH RATEHEALTH CAREHEALTH FACILITIESHEALTH INSURANCEHEALTH POLICYHEALTH SERVICESHEALTHY LIFEHOUSEHOLD INCOMEHOUSEHOLD SURVEYSHOUSING ASSISTANCEHUMAN CAPITALHUMAN DEVELOPMENTIFSILLNESSIMMIGRANTSINCOME GROUPINCOME GROUPSINCOME INEQUALITYINCOME LEVELSINDIVIDUAL HOUSEHOLDSINFANTINFANT MORTALITYINFRASTRUCTURE INVESTMENTINSTITUTIONAL CAPACITYINTERNATIONAL COMMUNITYINTERNATIONAL FINANCIAL MARKETSINTERNATIONAL LABOR ORGANIZATIONINVESTMENT IN EDUCATIONJOB CREATIONLABOR FORCELABOR MARKETLABOR MARKETSLABOR MIGRATIONLIFE EXPECTANCYLIVE BIRTHSLIVING STANDARDSLONG TERM UNEMPLOYMENTLOW INTEREST RATESLOW-INCOME COUNTRIESMACROECONOMIC POLICIESMACROECONOMIC SHOCKSMARKET CONDITIONSMARKET ECONOMIESMARKET ENTRYMARKET INDEXMARKET PRICESMATERNAL MORTALITYMATERNAL MORTALITY RATESMATERNAL MORTALITY RATIOMENTAL HEALTHMIDDLE INCOME COUNTRIESMIDDLE INCOME COUNTRYMIDDLE-INCOME COUNTRIESMIGRANTMIGRANT WORKERSMIGRATIONMILLENNIUM DEVELOPMENT GOALSMONETARY AUTHORITIESMORAL HAZARDMORTALITYMORTALITY RATENATIONAL AUTHORITIESNATIONAL GOVERNMENTSNATURAL DISASTERSNEWS RELEASENUMBER OF PEOPLENUTRITIONNUTRITIONAL STATUSOFFICIAL DEVELOPMENT ASSISTANCEOLD AGEOLD-AGEOPPORTUNITY COSTOUTPUTPAYMENTS SERVICESPEACEPENSIONSPER CAPITA INCOMESPOLICY DEVELOPMENTSPOLICY IMPLICATIONSPOLICY MAKERSPOLICY RESEARCHPOLICY RESEARCH WORKING PAPERPOOR HEALTHPRIMARY EDUCATIONPRODUCTIVE ASSETSPRODUCTIVITYPROGRESSPUBLIC PERCEPTIONSPUBLIC SERVICESRATE OF GROWTHREAL WAGESREMITTANCEREMITTANCESRESPECTRISK MANAGEMENTRISK SHARINGSAFETYSAFETY NETSAFETY NETSSANITATIONSAVINGSSECONDARY EDUCATIONSINGLE-PARENT FAMILIESSOCIAL AFFAIRSSOCIAL COHESIONSOCIAL CONSEQUENCESSOCIAL COSTSSOCIAL EXPENDITURESSOCIAL IMPACTSOCIAL INCLUSIONSOCIAL POLICYSOCIAL PROGRAMSSOCIAL PROTECTIONSOCIAL RISKSSOCIAL SAFETY NETSSOCIAL SECTORSOCIAL SERVICESSOCIAL SUPPORTSOCIAL WELFARESOVEREIGN DEBTSTOCK MARKETSUBSTANCE ABUSETAXTAX REVENUESTERTIARY LEVELUNEMPLOYEDUNEMPLOYMENTUNEMPLOYMENT RATEUNEMPLOYMENT RATESUNEMPLOYMENT STATISTICSURBAN POVERTYVOLATILITYVULNERABILITYWAGE POLICIESWAGESWEALTHWOMANWORKING HOURSWORLD DEVELOPMENT INDICATORSWORLD ECONOMYWORLD HEALTH ORGANIZATIONWORLD POPULATIONYOUNG CHILDRENYOUNG PEOPLEcoping strategiesThe Social Impact of Financial Crises: Evidence from the Global Financial CrisisWorld Bank10.1596/1813-9450-6703