The ugly reality of the 2008 global financial crisis is still looming on the corridors of financial giants across the globe. It has been difficult to predict with exactitude if this drama is still on stage or if the curtains have been drawn to give way to another sweeping start. Statisticians, economic barons and political pundits have had their own stories to tell labelling and pointing fingers to major actors on both sides of the game.
The first global financial meltdown occurred in 1929 and was partly blamed on the political and financial regulations of Britton Woods’s institutions and speculation from financial giants. Most countries were also blamed for the practice of protectionist economic system. Most global institutions have undergone structural changes to give a new meaning to world economy problems. Onlookers are watching how these events are unfolding with a lot of curiosity and uncertainty. The most frightening thing about this is the fact that major powers fragile nations depended and invested much hope and optimism seems to be crashing out of the race. Most people doubt if the “Structural Power” enjoyed by the United States of America for centuries is on the brims of collapse. Since the 2008 global financial crunch, bailouts to multinational corporations, economic fluctuation and redundancy has pondered everyone asking if America will ever be the same again. This has taken a deep political under tune as Republicans and Democrats fight to remain on top and stay in top form. The calamity of events prompted one great leader to refer to the United States as “a country living above its means” Major European nations are also plunged into this dilemma as bailouts and rescue packages have been the main cards on the table in major conferences these days. The Managing Director of the International Monetary Fund (IMF), Christine Lagarde recently remarked that to overcome global recovery, there is need for new and tougher policies. The world order has created a situation that is turning its ugly face and innocent souls have become sacrificial lamps to the system. Although bailout worked before like the glaring example of South Korea in 1979, today one will have the impression that it’s a mere “try an error game” For example, member states of the Euro zone have been in disagreement over the bailout package to the sinking Greece.
Though analysts describe the Arab Awakening as a time bomb, one factor that has instigated the revolution has been the social media where young and energetic revolutionaries have taken the major roles. Some authoritarian regimes decided to shoot down the system but the flow of information continued. Wiki leaks became an enemy of progress after he exposed secret and diplomatic cables of some giant nations. The so called IT revolution praised by many suddenly became a suspicious tool in the eyes of major world players who never thought the system could one day work against their own favor. Some NGOs have come to the lamp light trying to make the world understand how harmful the internet can be to the present generation of young stars. Some teenagers have become too violent because of the kind of movies or games they are exposed to.
Last year, the scientific community came under scrutiny and criticisms after it was noted that some predictions and findings lacked precision and satisfactory results. Recently a dead satellite was to reach the earth but unfortunately those who created this magnificent and captivating equipment doubted where exactly it was going to fall and the scale of the damage it could cause.
There is the common saying that when the West sneezes, Africa catches a cold. Developing nations are mostly entrapped in circumstances of innovation. Looking at the present economic turmoil, one will be forced to ask, what will become of developing countries in the phase of these new structural policies when most of the developing nations are still struggling to recover from the structural adjustment programme imposed on them by the Britton Woods institutions some years back that brought suffering and misery to many households? Billions if not trillions of dollars has been spent as aid to deliver Africa from poverty unfortunately the situation is yet to benefit the masses.
With coercive and structural power, world giants brandished globalisation or the new world order with the ambition of qualitative changes to attain higher heights in the development leader, but the passage of time has proven that no country no matter how powerful it may be is spared from the ill effects of the system that has pushed the world bleeding from its own weapons.
More collective effort is needed that involves social forces and the world order inclusive. The world order depends on time and space and much can only be achieved if institutions; ideology and the personality factor are no longer seen in terms of regions of the world but as a common entity to solve the present world crises. Developing nations and especially African countries should cease this opportunity and fit into the system so that whatever changes are put on the table, they will be involved in decision making and not be considered as “late comers of development” all the time. It is high time developing countries put on their thinking caps; develop leadership and economic strategies for developed nations to abide to their new agenda.
Nfor Canicius
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