The credit crisis.. some may be fed up of hearing it by now as it has been in the news constantly for the past two years. However, it is important that we all understand the cause and the consequences for the world. The Netherlands is now starting to notice the effects of the credit crisis. It is still easy for us as Dutchmen to say that the crisis hasn’t been that severe in our country. Many employees have been discharged from their jobs , but were able to get an income in the form of a social security. People in e.g. Africa don’t have this option. The world economy is having a slight recovery, but we will deal with the consequences of the crisis for at least the coming two years.
As some students already discussed the cause and background of the credit crisis, and I don’t want to bother you with similar information, I will discuss the credit crisis from another angle. This by starting off with a reference to Olga’s credit crisis blog in which she talks about the greed of people.
The goal in life of having more money is overruled in the Western world, especially in the United States where all the drama started. The media has greatly covered the consequences of the crisis for the US and Europe. But what about the effects of the crisis in Third World countries?
Developing countries have mostly been overlooked by the media and the rest of the world, while the crisis hurts these countries the most. The EU and the United States are more interested in saving their own economies with the help of state aid rather than helping out the poor countries. Decisions must be taken on where money must be spent and unfortunately development aid doesn’t seem to be on the priority list. Furthermore, inflation and unstable exchange rates have resulted in an increase in (food) prices in the developing countries. This is very concerning since 80% of the world population earns less than $10 per day. Families have to cut their expenses in order to survive. Money is mainly spent on food and sending their children to school isn’t possible anymore simply because they can’t afford it.
Speaking of the increase in the prices, Europe seems to be suffering from it as well. Almost two-third of the EU Member States, especially Spain and Italy, have a food problem due to the crisis. National governments are trying to help those who can’t foresee in their primary needs by distributing food and clothes. This is not enough though.
It’s time for the US and Europe to stop being greedy and realize that the credit crisis is a worldwide problem and national governments must handle it all together. State aid can be a solution but it is only short-term. Money should be spent more effectively and efficiently providing a long-term solution. Maybe then we will be able to combat the crisis in the Western countries and in the Third World countries.
Hey Gajana,
BeantwoordenVerwijderenThanks for posting such an interesting and unusual article! I have really enjoyed reading it. Your way of description is very entertaining as well as informative on a high level.
Yes, I do also think that there basically are two main problems: 1st, as you said, the media bubble that seems not to stop until someone from the "political ceiling" will command to promote the idea of "the end of recession"; 2nd is the way the governments handle it. And as you said, the aim to achieve some results on a short term may not be a purpose. It is like trying to close small holes on a sinking ship instead of thinking of a fundamental solution. You know, as they say, "If you want to feed a man for a day -give him a fish; but if you want to feed him for life - teach him how to fish". Therefore, I totally agree with you and am really pleasant to enjoy your postings!
Kindest greetings,
Olga