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Why Economic Slowdown
My Dear FriendsI happen to attend the seminar on global crisis by Dr. Jean-Pierre Lehmann, Professor of InternationalPolitical Economy, IMD Lausanne, Switzerland & Founding Director of The EVIANHe did throw light on following issues.
What do you need to do effectively in these turbulent times? What issues are keeping top executivesup at night in this global crisis? What are the prospects for globalization and implications for India?
I am here with highlighting the crux of it.1.
 
The global business environment has undergone the most profound transformation sincelast two centuries2. Driven by the global market and ICT revolution3. Collapse of the first and second /third world paradigm4. The dramatic re –emergence of China5. The emergence of multiple new actions and instruments –eg: Mittal steel, Google, CNOOC,SWIF, etc6. The closing of the developing –developed countries gap7. With significant global benefits-but very unevenly spread8. Unprecedented opportunities and threats.The reasons for global crisis are :1) Excessive Liquidity and Cheap credit2) The “Chimerica effect”3) Absence of rules and oversight4) Institutional deficiencies
 
Why Economic Slowdown
5) Hubris6) Defective corporate governance (incentives and greed07) Technology (the pompidou syndrome)8) Huge commodity/energy price volatilizesThe crisis consequences:1. Tight credit squeeze-eg; trade finance2. Collapse in demand3. Recession /low growth4. Decline in world trade5. Massive government intervention6. Dismal social consequences7. Rising protectism8. Failure of G20Global Systematic Crisis1. Institutional crisis2. Financial crisis3. Trade crisis4. Food crisis5. Water crisis6. Fisheries crisis7. Energy crisis8. Geopolitical crisis9. Crisis in confidence
 
Why Economic Slowdown
10. Environmental crisis11. Looming climate change crisis12. Poverty /Inequality crisis13. Crisis of capitalist (market economy )14. Health (AIDS/HIV) crisis15. Value crisis (greed)16. Youth Unemployment Crisis17. Leadership crisis18. US crisisAs long as we rely on technical fixes to plug moral gaps and governments rush in with rescue packagesthat enable the merry-go-round to start up again, we are bound to keep lurching from frenzy to frenzy-By Robert Skidelsky50% of the world population have less than 1% of global wealthThoughts and Suggestions by the Evian Group1. Fair Rules2. Strong Institutions to implement them3. The ethics to drive them4. The entrepreneurs to create wealth5. Inclusivity to empower those to the BOP6. The technologies to mitigate adversities7. The imperative to focus on the next generation8. Mind sets for Knowledge :
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DanielEssman

Thank you, Bindu. One question: what is wealth? I produce poetry...am I creating wealth. I just helped wire a 7kwatt solar array. Is converting photons to electricity creating wealth?

reply09 / 08 / 2010
ranjeetkk

Hello Bindu.. I'm sorry but this is a very poor one... I'm not a economist but a mechanical engineer. I can write a better article than the one you have posted on Economic slowdown.. Post some better ones please..

reply03 / 21 / 2009
ujwal.latkar8181

Was an excellent article Not even an iota was left untouched. It is all inclusive article encompassing every nook and corner of subject area. I hope you will excel in your further writing also. But do not forget to suggest proper solutions to problems. It’s your competence. Thanks. Ujwal.

reply02 / 01 / 2009
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