The world has entered a critical economic period with Europe’s financial turmoil spreading in developing countries which had not been affected by the financial crisis. According to Word Bank Global Economic Prospects (GEP) Director Andrew Burns, the period, which started in August last year, has affected global economic activities especially in the developing countries. Burns warned that developing countries should prepare for further downside risks as Euro Area debt problems and weakening growth in several big emerging economies and dimming global growth spread. “Developing countries are at risk from deterioration of conditions in high income countries,” cautioned Burns. He pointed out that much more serious consequences could be envisaged if financial-sector solvency is affected or a market-induced credit occurs. Speaking during a press briefing at a Nairobi hotel, Burns however said growth in Africa is projected to strengthen this year and next year despite weaknesses elsewhere. However he said that there is need to identify new long term drivers for growth and engage in contingency planning and prioritize on spending programs incase financing freezes up. “Global recovery is at difficult juncture with significant downside risks,” declared Burns. Speaking at the same event, a senior Secretary at the Ministry of Finance Dr. Geoffrey Mwau said that Kenya is not likely to be affected by the financial crisis anticipated by World Bank since it is not dependent on donor funds like many other countries. “Although Kenya is financing largest elections in her history and the implementation of the new constitution which brings new governance structures through the devolved governments, economy is expected to remain stable,” observed Dr. Mwau. He said that Kenya has for the past two years embarked on infrastructural development like roads network, and revamping railway line. Other infrastructural improvements the government has earmarked for face lift are agriculture, business environment and technology as espoused in Vision 2030, Kenya’s blue print for becoming a middle level income country by 2030.

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