ABSTRACT
In the temporary recovery, even though output rebounded in most regions, employment expansion has remained sluggish and labour market conditions in most countries continue to remain adverse for workers. The East and Southeast Asian economies that were hit by the crisis were all previously among the best performers among developing countries in terms of both Gross Domestic Product (GDP) growth and exporting ability. It is interesting to note that the pattern in terms of employment was varied among these countries, but still similar to the current experience of some eurozone crisis countries. Argentina suffered one of the most severe financial crises ever experienced by any developing country in 200102, after it was finally forced to abandon the currency peg that had linked the Argentine peso to the United States dollar. It is also worth noting that the fiscal deficits that have emerged as a result of the global crisis have come after a period of fairly disciplined fiscal behavior.
