What is the impact of Financial and Economic Crisis on developing countries?

The impact of the crisis has produced serious wide-ranging and different impacts around the globe. Negative impacts are reported mainly from developing countries and within them some have serious problems though they did not cause the problem.

The following impacts are: increasing unemployment, deceleration of growth, growing budget deficits, falling taxes, negative effects on trade balances and balances of payment, declining remittances to developing countries, reduced access to credit and trade financing.

Adverse balance of payment--inflation--unemployment and underemployment--economic inequalities and poor performance of all key sectors and lower GDP for the nations coupled with Higher taxation requirements to build up the deficit in the budgets.

International financial and economic crises' impact on developing economies depends on the way in which individual countries are integrated into the international system. In particular, many developing countries export raw materials used in manufactures based in more developed countries. When the latter experience economic contraction, the market value of raw materials may drop, causing economic depressions in countries that have not managed to diversify. Countries reliant on monocrop agriculture are hit especially hard. Likewise, countries that are dependent on tourism or that manufacture luxury items for the international market may suffer a great deal in an economic downturn.At the same time, however, there are instances of economic downturns being used as an opportunity. As businesses in more wealthy countries look to cut costs, they may look more seriously at relocating production to be closer to resources or to exploit cheaper labor. Likewise, the decline of sectors of an economy dependent on international trade may encourage production for local consumption, which may be more sustainable. Food security, for example, may improve in the long term.Ultimately, the answer depends on the individual circumstances.

Most Developing Countries are Export Oriented and a slow down would mean poor export off take, less inflow of Foreign Exchange. The slowdown would also mean that the Foreign Currency will depreciate and there is surplus in the foreign market. 

The upside for the Developing Nation is to close quick deals for capital Asset at this point and to  open Market to the  Developed Nation who will bring in capital and New Technology.

Agreed with Mr. Venikatraman.

Since the World has become a global economy; most of the developing and developed countries are fully dependent on their exports and International consumers. Obviously, the impact of financial and economic slow down is higher on the countries with small number of local consumers and having bigger volume of international buyers. Due to losing investors confidence on the International financial markets and Banks, the consumer spending on luxury, comfort, real estate and related products like hotels, airlines, holiday resorts, etc had a major impact of economic crisis. Which consequently results into mass lay down / retrenchments / no jobs for fresh graduates and created global economic turmoil.