Some commentators have disingenuously claimed that the crisis was completely unforeseen and they were quite taken aback as it occurred following almost a decade of substantial global growth with low inflation. Terms like “the Great Moderation” and the “Goldilocks economy” became popular and well describe the mood of the times. Developing countries, and emerging markets particularly, had been doing well.
Many countries in Africa seemed to have finally turned the corner, with their growth rates boosted by high demand for commodities. Global poverty was in retreat. There were reductions in civil conflicts. The democratic deficit decreased. There were improvements in governance. Changes in macroeconomic management and the policy environment held out hopes of fast and sustained growth.