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Bachelor Thesis from the year 2009 in the subject Business economics - Economic Policy, grade: 1,5, University of St. Gallen, language: English, abstract: As the economic crisis of the late 200os unfolds, the need for global political, regulatory and supervisory changes becomes apparent. This paper is intended to clarify the role that least developed countries play in this process. Different channels of vulnerability are identified and examined both in a dynamic and static framework, thereby contributing to an understanding of how and to which degree the world's poorest countries will be affected by the current global economic turmoil. It arrives at the conclusion that LDCs are likely to be negatively affected by numerous structural factors and identifies low and high vulnerability states by constructing a composite Economic Vulnerability Index.