This is a presentation on Worldwide Financial Crisis made by Vinod Thomas, Director-General & Senior Vice President at the Independent Evaluation Group, World Bank. In the presentation, Mr. Thomas describes the reasons for the recent financial crisis, highlights the extent of damages, and discusses policy responses to the crisis.

1. Worldwide Lessons from Financial Crises 金融危机的国际经验及现实思考 Vinod Thomas, Director-General & Senior Vice President Independent Evaluation Group, World Bank China Center for Economic Research Peking University February 19, 2009

5. The sharpest global decline since 1970 GDP Growth

6. Both OECD and emerging markets fall – no decoupling Source: World Development Indicators 2008 and IMF World Economic Outlook Update, January 28, 2009

8. Exports and capital flows crumble China Jordan Mexico India Source: National Agencies through Thomson/Datastream. Source: Institute for International Finance: “Capital Flows To Emerging Market Economies.” 01/27/09. Exports (Volumes, Change % 3 mma y/y) Private Net Capital Flows to Emerging Economies

9. High trade shares with sharp declines in GDP growth … (current episode) Source: World Development Indicators 2008 and IMF World Economic Outlook Update, January 28, 2009

10. … Also high trade shares with strong recovery of GDP growth (past episodes) Source: World Development Indicators 2008 Note: Crisis events are Argentina (1999-2002); Indonesia, Korea, Russia, Thailand, and Brazil (1997-1998); Mexico (1994) and Turkey (2000-2001)

12. Five Areas for Action Fiscal Trade Poverty Environment Consumption Investments Liquidity Financial system Market confidence Sustainable growth Social stability harmony Terms of trade Value chain CRISIS Financial

21. IV: Outlook: Uncertainty at an all-time high