"The Global Economic Situation and Prospects
for 2010 and Beyond: Policy Options".
As the world globalize bringing with it new economic, social and cultural dynamics in multifaceted ways for local citizens.
Most would agree that globalization is beneficial, but there are also those who feel that it brings threat to national sovereignty and local culture.
In most cases globalization provides greater stability and security, its key developments can also be deployed towards the opposite end.
As one economy falters others get affected falling into the same trap as the initial economy. With this kind of phenomena finance crisis can spread from one economy into another forcing global economic crisis. Once in this allurement world economies fell into deep recessions, while economic growth slows down around the world. Seriously affecting poor citizens and countries.
Free market is no longer free, massive state interventions, including state ownership of banks and companies.
The whole world has been affected by the current global financial crisis, through different means and levels.
The United States and Europe, where the initial problem started where mainly infected via the open market and limited regulated financial sector.
Asia got affected via its exports to these developed economies; growth dived sharply due to decline in the demand for exports.
Eastern Europe was reliant on large capital imports through western banks and was therefore hit by the reversal of capital flows.
African and South American economies suffered due to the massive drop demand, which caused the prices of commodities to drop.
India was hit by sudden reversal of capital flow reversals as part of the global de-leveraging process.
With an interconnected global economy, a major financial crisis in one country cannot be contained, as it will definitely filter itself to other economies.
In addition financial system and the expansion of large...