THE EFFECTS OF THE 2008/9 ECONOMIC RECESSION ON NGO SUSTAINABILITY AND FUNCTIONING IN THE SOUTH AFRICAN SOCIAL SERVICES, HEALTH AND EDUCATION SECTORS
AbstractThe economic crisis of 2008/2009 first emerged in the developed economies in 2008 and spilled over into developing countries and economies in transition through international financial and trade channels. This is the greatest financial crisis the world has faced since the Great Depression (Hanfstaengl, 2010; Sandra, 2008). At the height of the recession many feared that it would change into a depression. Banks were “unwilling to lend, credit spreads had widened sharply, stock markets had plunged and economies everywhere were stumbling” (Bustillo & Velloso, 2009:7). Some of the immediate effects of the economic recession on society included higher food prices and other living costs. Furthermore, corporations experienced reductions in their profit margins. It could reasonably be assumed that the NGO sector would suffer significantly as corporate donors and philanthropists typically contribute less during economic downturns.
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