11  CDFIs as a solution to market failures Many factors have contributed to the economic gains that I have cited, including broad macroeconomic forces and advances in the delivery of financial services. CDFIs have also played a valuable role by analyzing the economic potential of lower-income markets and developing strategies and marshaling resources to tap that potential.
In addition, the other dimension of the change in relative prices to which I refer – the relative decline in prices for many manufactured products as a result of the emergence of China and other low-cost producers – is affecting local producers. Not surprisingly, those parts of the economy, while growing, are experiencing less strength than seen here in the west.