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As we've been reporting here at GlobalPost, the global economic crisis is creating serious problems around the world.

In a report released yesterday, the World Bank now says the global economy will shrink for the first time since World War II. It also warned that developing countries will have less money to deal with the problem.

As creditors flee emerging markets, the World Bank says governments could face a shortfall in funds this year of up to $700 billion.

This is a big deal because countries need money to pay for social safety nets — health care, housing, unemployment insurance and the like — to help cushion the impact of economic crisis.

Without it, the threat of social unrest and political instability rises.

Here's how World Bank president Robert Zoellick put it:

"We need to react in real time to a growing crisis that is hurting people in developing countries. This global crisis needs a global solution, and preventing an economic catastrophe in developing countries is important for global efforts to overcome this crisis."

The World Bank also warned that global trade could fall to its lowest level in 80 years, and global industrial production could be 15 percent lower in 2009.

All of this comes at finance ministers from the world's 20 biggest economies prepare to meet Friday and Saturday in London.

But amid all this gloom is there hope on the horizon, at least for investors?

GlobalPost financial markets contributor Andrew Parlin thinks so. Here's why.

 

http://www.globalpost.com/notebook/commerce/090309/world-trouble-cont