CIGI has formed a task force of eminent economists to study and offer solutions for the devastating effects of the current financial crisis on developing and transition economies. Reminiscent of the 1930s, when most Latin American countries were in default, several countries recently have experienced a sharp reduction of their international trade, a rapid decline in inward investment flows and, in many cases, repatriation of prior foreign investment and a fall in remittances. This first statement by the task force briefly outlines the nature of the crisis for developing countries and suggests in general terms a strategy for a way forward.