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Archive for the ‘The Global Scenario’ Category

There is no country in the world, no, not even North Korea, that isn’t dependent, in some way or the other, on America’s mighty economy. The belief that America’s “sneeze” travels a long way is all-pervasive. This is why Obama’s election campaign was followed with bated breath, and every promise he made about the economy, bailout packages, environment, education, outsourcing, healthcare, ethical governance, addressed some deeply felt need in everyone hoping for a better tomorrow.

According to the IMF it is not a good option for developed countries to revert to their old ways of spending as the economy of the world is still fragile. However now they should look at spending in a thriftier and cost effective manner. One should also counteract any and every potential chances of a downturn in the values of property of that nation. Nevertheless as the financial market grows every day, the benefit to man, especially the common man grows as well.

It has been argued by financial watchers that another probable cause could have been the overproduction of goods. Thanks to globalization, the markets had opened up and countries like India and China became the investing grounds for western multinational companies.

Overproduction caused deflation.

The terribly unfortunate result of all this was that among other things, the volume of shipping fell, and unemployment is at an all-time high. The prediction is that by the end of 2009, 20 million people would have lost their livelihoods.

Finally it is the political stability of the various nations of the world that became shaky. Protests in France, Latvia, Lithuania, Greece, Moscow and China rocked these nations. Many countries are in depression. This, more than ever has proved our dependency on each other. No country can exist in isolation. What happens in one country affects all others can no longer be ignore however isolated you remain.

Loans, grants and tax breaks will be given to those organizations that build biomass factories, or conduct research into how ethanol can be made from wood chips and switch grass, or make better batteries for hybrid cars. The use of E85 as a substitute for gasoline is being researched into.

Bigger, and better and faster isn’t always the best option. This has also brought the concept of social responsibility into sharper focus. One feels that by offering their expertise and superior knowledge to deprived children, these teachers are preparing them for life and the world. They too deserve a fair chance. This focus on an extremely viable option which promises a better future for many, will impact on the world. Finances need not be the center of the universe.

While there is time, graduates and those who have had tremendous exposure in the market should find and incorporate ways to enable them to find and many extra ways to earn income.

After being tried and troubled by the exploits of the global recession that threatened to rip out the world economy from its roots the after effects of the recession are receding as the world economies stabilize themselves to combat this nemesis.

The IMF had quoted earlier that the world economies will not be able to rise up however this seems way out of question as due to the steady growth of the Asian markets this impossible aspect has become possible in short there is a ray of hope for the drowning economies of the west.

The IMF points out that during this period the world economies will not expand to a very large extent but will settle down and spurt to a growth by the start of next year. This is in accordance of the previous statements mentioned. However countries like china and India are set to make a marked comeback as they are set to show about a 5% growth by the start of next year.

Did the G20 summit achieve anything in particular? Well we shall look into some of the facts. There were all the bigwigs of the world, even Gordon Brown and Barrack Obama. All important peoples at one place but all in one day, we can only imagine what can happen.

There is a copy of this summit that describes what options and decisions can be taken for world economic reform. There were some big words used in G20 meeting. Like “ We believe that the only sure foundation for sustainable globalization and rising prosperity for all is an open world economy based on market principles, effective regulation, and strong global institutions.”. How do we interpret this??

Globalization is a term used in this scenario. Globalization to the world leaders is using a pool of cheap labor to get optimum result in paying lower wages and maximizing profit by cutting cost on paying for production and wages.