Question: What will be the combined effect of the Energy Pirice Increases and Credit Crunch

I am old enough to remember the 1970s when oil prices went up. Liquidity was high, and developing countries borrowed heavily to finance development and import costs. Then came the 80's, heavy borrowing by the United States, credit tightened, and the developing countries found themselves with a debt crisis.

Now we see oil selling at historically high prices, about US$100 per barrel, As China and India grow economically, they would seem likely to continue to increase demand for primary products, and thus to make them more expensive on world markets. We also see the sub-prime lending problems extending, threatening credit markets worldwide, and talk of recession in the United States. There is an old saying that when the United States sneezes, developing countries come down with pneumonia.

Is there a real threat to reverse the last decade's economic progress in Africa and in the least developed nations in other regions?