GEFC Policy Paper 2011 EN

Date Signed

This issues paper analyses the economic situation in SADC in the aftermath of the global economic and financial crisis (GEFC) and identifies measures of regional integration to reduce the vulnerability of the region to future economic crises.It serves as a background paper for the SADC Summit of Heads of State and Government in August, 2011. It will also provide additional recommendations for possible incorporation in the envisaged external RISDP review.

The paper discusses the several ways in which the SADC Member States have been affected the global economic and financial crisis, depending on their economic, financial and trade structures. Reduced export receipts, especially from developed countries, resulted in worsening balance of payments positions, lower fiscal revenues and larger budget deficits. The ultimate outcome of this development has been reduced economic growth, and increasing unemployment and social stress in Member States of SADC.