There are many problems in the world today, such as political crisis, widespread famine in the some countries, pollution crisis. Every problem are linked to one main reason that is economic crisis. The affects of Economic crisis can impacts the living style, stabitlity and survival of each society and ethnic. Because of that, economic issue has already became a mian subject to every pepole and governments. Every government has to pay closed attention to internal and external economic situations in order to prevent themself from economic crisis.
According to "World Bank warns developing world to prepare for shocks" in BBC online news, World bank has warned that the developing countries should prepare for slow down of global economic growth in year 2012, altough it can relieve inflation that still higher in many developing countries. World bank has predicting economic growth rates in 2012 of developing country from previous 6.2% down to be 5.4%, and 2.7% down to be 1.4%. (2012, ¶ 8). European debt crisis is main reason to trigger low growth rates. The situation may continue for long-term. Developing countries are more affected than developed countries.
Economic low growth rate is a very dangerous signal to global economic system, it can turn out to be economic crisis. The weak growth rate is caused by many factors, such as low demand for product or low consumption, severe public debt,severe inflation, and high pirces of commodity. Each factor is linked together and influence each other. If the governments could not increase or maintain growth rate , Eventually, other problems would appear unpleasantly. The main problems are high unemployment rate, low domestic demand, and high criminal rate. All causes and effects like a vicious circle. Some people think that the main direct affect of low growth rate is low prices of products, and it may be a good for consumer and market. I don't agree this idea, even though product prices are reduced, but more people lose their jobs and the following question is that how can they purchase that products. Some governments invest lots of money in infrastructure in order to promote their domesitc demands, that can directly create many jobs. I think that is a effective measure to stimulate economic growth in the some countries, but not suitable for the other countries, because the situations of each country are different. Improving low carbon industry become a popular solution for many government recently. Because it uses clean and green energy to run its process and don't have to use high polluted fuel like oil or coal. This kind of industry can save the cost and creat lots of job.
My sister runs transportation business in Indonesia. Her company has small ships to bring things from the island to the big ships.
ReplyDeleteBecause of the Europe crisis, companies do not buy a lot and the income become less now.