In developing countries, the most affected by the global crisis were emerging market economies with current account deficits that could not withstand the drop in capital inflows resulting from the crisis (UNCTAD, 2010). But for low-income countries that had little involvement with global capital markets, and for countries with current account surpluses and/or substantial international reserves, the negative impact of the financial crisis has been shorter lived and less severe. For instance, many Asian and Latin American countries employed counter-cyclical monetary and fiscal policies, turning towards domestic sources of demand to counter declines in global trade (UNRISD, 2010).