After all what is recession? It is a mix of all the worse ones we can expect or we had experienced in the past. It’s the shortage of money, food and increase in unemployment rate. When we look around we can see such types of news here and there. A large number of such news are coming from the west. But we Indians as a part of open economy are also facing similar problems. Our IT and real estate sector are the ones which are worstly hit by the recent financial crisis. Our equity market also plunged FIIs are taking back their money on a daily basis from Indian share market as a result the crisis hits our economy harder.
Recently our Finance minister Mr. P Chidambaram said that the crisis will be over with in 9 months. But recent reports say that 15 European countries are hit by the crisis. Germany , a giant announced that they are in recession. Reports say that tourism, real-estate and IT will be the major ones which may face huge trouble. Financial services sector will also be affected by the crisis. As a curative measure govt had taken so many steps including bank rate cuts. But the effect of which only lasted for few days. These measures helped the market to cross the 10,000 mark but soon it went down and now it’s at 9000.
G20 Summit and Aftermath
The G20 summit took place in Washington was a big step forward to ease the current financial crisis. Leaders of developed countries as well as developing countries participated in the summit. They discussed the present situation and said that they will take necessary steps to eliminate the crisis. There were reports that there was a difference of opinion between the US and the European union. Actually the world order now is headed by the US and European union. We can say Japan as an Asian representative. The decisions are taken by the US and EU. Like any other decisions they have to support their people. Their people means the people already living richness. Their life style is high and they have never experienced starvation as third world countries do.
As a result of the open up of the economy India is also suffering the pains of the east. But our mixed economy helped us a lot to minimize the effects of Global financial plunge. As our ministers saying, we have a well regulated system working in India. Our fundamentals are strong. To a large extent it is true. Our regulators helped us a lot to overcome the situation ( of course it is not over). We are protected, our investments are safe. (The drawback of it is when the crisis is over there will be no room for aggressive privatization in India. All the parties will object it. As a result the fund flow from abroad will decrease and it will affect the growth aspects of the country)
Our PM recently said that India will grow at a rate of 7.5% during the year. It’s a good sign compared to the current market situation. Also it reminds us about the measures should be taken to protect Indian investors. What America and other countries experienced is a lesson for us.
Emergence of a new world order
The present world order is in the favour of rich (arguably). After the second world war America became super power and the rich European nations came down to the second number. They made policies in order to increase wealth for Americans. As a result they started to explore the possibilities of Emerging economies. At the same time they as a team (consist of US and EU) eyed the oil and natural resources on Earth and through diplomatic ties and sometimes through wars they became authority of the places where there is natural wealth. When we analyze the situation we can understand that the trade agreements so far were in favour of rich people.
Emerging economies got a pie of the new order but the major portion went to the west. Globalization was a angel with bad qualities. Now the time has come. There are times when the lease will become most important. India’s domestic regulators are such kinds. The farmers the only people who can support human beings should be treated properly. A world which give China and India more powers and roles to perform. Remember one third of the world’s population is residing in this region of Earth. A Global financial regulator will not be helpful for all as the past says it will be in favour of the rich. Instead national regulators should be implemented. No country should impose their interests on other countries.
Every individual’s investments should be protected. Every country should be able to assure their people that their investments are same. Cultivation should be promoted across the globe. Thorough review of the situation is needed on a regular basis to avoid one more recession. After all world is for everyone. We all have the right to live.
Recently our Finance minister Mr. P Chidambaram said that the crisis will be over with in 9 months. But recent reports say that 15 European countries are hit by the crisis. Germany , a giant announced that they are in recession. Reports say that tourism, real-estate and IT will be the major ones which may face huge trouble. Financial services sector will also be affected by the crisis. As a curative measure govt had taken so many steps including bank rate cuts. But the effect of which only lasted for few days. These measures helped the market to cross the 10,000 mark but soon it went down and now it’s at 9000.
G20 Summit and Aftermath
The G20 summit took place in Washington was a big step forward to ease the current financial crisis. Leaders of developed countries as well as developing countries participated in the summit. They discussed the present situation and said that they will take necessary steps to eliminate the crisis. There were reports that there was a difference of opinion between the US and the European union. Actually the world order now is headed by the US and European union. We can say Japan as an Asian representative. The decisions are taken by the US and EU. Like any other decisions they have to support their people. Their people means the people already living richness. Their life style is high and they have never experienced starvation as third world countries do.
As a result of the open up of the economy India is also suffering the pains of the east. But our mixed economy helped us a lot to minimize the effects of Global financial plunge. As our ministers saying, we have a well regulated system working in India. Our fundamentals are strong. To a large extent it is true. Our regulators helped us a lot to overcome the situation ( of course it is not over). We are protected, our investments are safe. (The drawback of it is when the crisis is over there will be no room for aggressive privatization in India. All the parties will object it. As a result the fund flow from abroad will decrease and it will affect the growth aspects of the country)
Our PM recently said that India will grow at a rate of 7.5% during the year. It’s a good sign compared to the current market situation. Also it reminds us about the measures should be taken to protect Indian investors. What America and other countries experienced is a lesson for us.
Emergence of a new world order
The present world order is in the favour of rich (arguably). After the second world war America became super power and the rich European nations came down to the second number. They made policies in order to increase wealth for Americans. As a result they started to explore the possibilities of Emerging economies. At the same time they as a team (consist of US and EU) eyed the oil and natural resources on Earth and through diplomatic ties and sometimes through wars they became authority of the places where there is natural wealth. When we analyze the situation we can understand that the trade agreements so far were in favour of rich people.
Emerging economies got a pie of the new order but the major portion went to the west. Globalization was a angel with bad qualities. Now the time has come. There are times when the lease will become most important. India’s domestic regulators are such kinds. The farmers the only people who can support human beings should be treated properly. A world which give China and India more powers and roles to perform. Remember one third of the world’s population is residing in this region of Earth. A Global financial regulator will not be helpful for all as the past says it will be in favour of the rich. Instead national regulators should be implemented. No country should impose their interests on other countries.
Every individual’s investments should be protected. Every country should be able to assure their people that their investments are same. Cultivation should be promoted across the globe. Thorough review of the situation is needed on a regular basis to avoid one more recession. After all world is for everyone. We all have the right to live.
Posts
0 comments:
Post a Comment