The main purpose of the literature review was to review the evidence of
the effects of the crisis to date and to synthesise existing definitions
and propositions about state capacity.
Part 1 provides a brief overview of recent literature and case studies
on the effects of the financial crisis in developing countries (e.g.
ODI, IDS, IMF and WB), and to identify if and where the political and
governance implications have been addressed. The literature review was
supplemented by a consultation with southern and northern experts
(including those involved in DFID funded ODI research on the crisis) on
the key political and governance challenges in responding to the crisis.
Part 2 focused on the review of the (mostly academic) literature on
state capacity to respond to external economic shocks, drawing on
literature, on the Asian financial crisis as well as earlier literature
regarding structural adjustment, new institutional economics and impacts
Part 3 reviews some of the recent literature on state capacity and
globalisation, placing the current crisis in its historical context.
The key messages and findings of the literature review are summarised in
Foresti, M.; Massa, I.; Wild, L.; Harris, D. The impact of the global financial crisis: What does this tell us about state capacity and political incentives to respond to shocks and manage risks? Literature review: synthesis of findings. ODI, London, UK (2012) 7 pp.
The impact of the global financial crisis: What does this tell us about state capacity and political incentives to respond to shocks and manage risks? Literature review: synthesis of findings