Big time casualties of the meltdown? The poor in poor countries

A few days ago, The Daily Beast ran an excerpt from a recent book by Mohammad Yunus, the Nobel Prize-winning economist/microcredit guy from Bangladesh. In that, Yunus notes:

Millions of people around the world who did nothing wrong are suffering. And the worst effects, as usual, will be felt by the poor. As economies falter, as government budgets collapse, and as contributions to charities and NGOs dwindle, efforts to help the poor will diminish. With the slowing down of economies everywhere, the poor will lose their jobs and income from self-employment.

It has been disheartening to see many of the world’s poorest falling back toward poverty just when we thought the planet was ready for a big step forward. We had thought food shortages were a thing of the past, but now they are back – not due to any lack of productive capacity on the part of the world’s farmers, and certainly not due to lack of effort by the poor themselves, but largely because of forces that could have been averted—the financial crisis and the world’s failure to pay enough attention to the need to improve agricultural technology to increase yields. We have to focus our attention at the global level to tackle this great new challenge to the world’s poorest.

One might think that Yunus will be biased--after all, he has been a big time champion of the poor, microcredit for the poor ..... But, not so.
David Rothkopf notes in his Foreign Policy blog that the scariest news is:

the Institute for International Finance's estimate that net private sector capital flows into the emerging world will fall in 2009 to one fifth their 2007 levels. That's, right, an 80 percent reduction in private sector cash into a group of fragile countries for whom such cash is the peace-keeper, the hope-giver.