Well It's About Time

More than lately the news media has been bandying about the R-word, and most of the speculators in New York, Tokyo and London have been dreading the use of the word. Late last month a unique U.S. based Think-tank of 'renowned' Economists finally declared that the largest economy in the world was in a recession. These modern-day wise men even went further to clarify that the shrinking of the world's economy started in 2007.

The problem with this type of news is that it is no NEWS. Heck every Tom, Dick and 'Joe the plumber' already knew this. For Pete's sake we had noticed jobs losses for months all over the world. Oil prices that hit a record US$140 tag in July 2008 are currently trading for around US$47 in November 2008; that is recessionary evidence if there was ever one. Everyone knows the crude oil business is primarily a supply and demand concern, especially faux demand.

However, what worries me is this? If the stronger economies are in recession, what about the over 1 billion poor living in developing countries? What will be their fate now? I guess you know the answer.

But hold on, before the recession in the rich economies started, what was the state of the economies of Sub-Saharan Africa, Central America and South East Asia where the poorest of the poor live? When these regions of the world plunged (seems now like forever) into deeper poverty the rest of the world just threw them 'Harvard' made Economic theories. "Deregulate", "Open your markets" they preached. They blamed civil strife and corruption as the bane of progress in these improvised parts.

The G-7 leaders years after years promised aid, grants and help but only delivered trickles. The fact is that the problems of the struggling countries was not considered a global problem. It was not imperative and the big economies simply did not have any interests in seeing the rest of the world at balance. Imagine this scenario; Equality all of over the world. What would that mean for the world powers? Less aid to impoverished countries, less emigration from these places and the availability of markets that can afford to buy and sell goods and products from rich nations. So what was stopping the West from "lifting" the rest of the world?

In these days when even the strongest economies in the world are shaky, and folks around the world are asking for real and sustainable change. It is an opportunity for the world to address this seeming structural issues that would lead to a more balanced world economy.

My advice, let the big economies borrow a leaf from the poorer ones; curtail the waste and reduce excessive individual and government spending. Also let the west improve 'Green' technology in every facet. Let everyone simply cut their coats according to their cloths. These are simple ideas but will require unprecedented courage to bring to fruition. Again these are not changes we can 'speed dial' into effect. There is a lot of work ahead and we simply have no other choice but to get on with it.

In 5 years, after the current recession has passed, I hope and pray that the enormous social and economic gaps between folks around the world will be on a steady decline. This would be the sign that things are moving in the right direction.

Good Luck World!!!