The global economic crisis has had a significant impact on developing countries, affecting various economic, social and political aspects. These countries often depend on commodity exports, foreign investment, and international aid. When a crisis occurs, the value of their currency can depreciate, causing high inflation which harms people’s purchasing power. One of the main impacts is a decrease in export demand. Developing countries that depend on exports of goods, such as Indonesia and Brazil, are experiencing a decline in income. Global supply chains were disrupted, resulting in production cuts and layoffs. In the agricultural sector, small farmers can be trapped in a deeper cycle of poverty due to falling commodity prices. Foreign investment was also affected. When global investors feel uncertain, they tend to withdraw their funds from emerging markets, leading to a decline in asset values. These countries often find it difficult to obtain loans, and interest rates can increase, worsening economic conditions. The health and education sectors are under pressure. State budget allocations often shift to dealing with the impact of crises, reducing investment in infrastructure and basic services. As a result, the quality of education is low and access to health is limited, creating long-term consequences for human resource development. Crises can also increase social and political tensions. Communities affected by unemployment and inflation tend to show dissatisfaction, which can lead to protests and instability. Young countries with fragile governance systems become more vulnerable to political turmoil. Resolving the crisis requires the right policies. Developing countries need to strengthen regional cooperation and diversify their economies to reduce dependence on one sector. Increasing technological innovation and investment in education will help build economic resilience. International initiatives are also key. Support from global financial institutions and developed countries can help developing countries overcome liquidity shortages. Well-designed aid programs can help these countries to recover and develop better after a crisis. In facing the global economic crisis, it is important for developing countries to take proactive steps. Risk mitigation strategies, sustainable infrastructure development, and increasing the capacity of government institutions are things that must be prioritized. Building social and economic resilience will help these countries not only survive but emerge stronger in the future.
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