The institutions on their part began to take measures towards fixing the crisis; some banks began cutting down their interest rates and reduced lending among other measures (Wide Angle, 2010). Concerning developing countries, some of them had seen strong economic growth prior to the economic crisis but the crisis resulted to significant slowdowns to their growth. Velde (2009) argue that the growth downturn in developing countries would be attributed to falling commodity prices, remittances sent from their Diaspora citizens, trade, and fall in investments. As a result, developing countries experienced stark implications such as the increased number of people living below the poverty line.
Devine (2009) points out that the economic crisis affected UK citizens’ lives in a major way due to the huge size of the economy. The effect was mostly concerning job losses and housing crisis. Since most companies aimed at cutting costs of operations in order to stay afloat during the crisis, most employees in those companies were laid off. Getting new employment was equally difficult since there were very few companies being set up.
Additionally, most citizens were unable to pay their mortgages and banks were unwilling to offer new mortgages hence causing housing crisis. In Russia, Mankoff (2010) notes, the crisis affected the Russian citizens in a number of aspects. He notes that, because of the crisis there is a likelihood that there would be a decline in the population since life expectancy has been reduced since the government is not able to meet the health and social needs of the citizens, adequately. Besides, the crisis diminished the disposable income of the Russian citizens due to increased inflation that pushed the cost of living upwards; citizens could no longer meet their needs adequately nor be able to save sufficiently thus translating to reduced investments hence possibility of shift towards poverty by increasing population.
This problem was compounded by reduced declining foreign direct investment and exports, which led to rise in rates of unemployment since Russia is an export- dependent economy (Mankoff, 2010). Research Questions The following questions were provided through questionnaires to people in two countries under study namely; the UK and Russia. The questionnaires were issued randomly to the respondents in the market places of these countries.
The respondents to the questions were of different age groups ranging from 18 to 67 years. Also, they were of different social status.
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