17 Mayıs 2013 Cuma

Recovery requires decisively action

The foremost challenges of the world such as growth, unemployment, lack of pity, compassion, brutality have been for a long time on the agenda of the world.
So, these appalling situation forces those people who face with unsuitable living condition to migrate and displace their own countries as well as leaving their business activities and living devices.
Of course, these unwanted events not only make up bad effects on those people, but also have negative effects on the entire economic activities directly or indirectly across the world.
Such kind of challenges, conflicts and poor governance repress development in many regions. In addition, climate change and natural disasters put social and economic achievements at risk. Cushioning these challenges requires successful domestic policy, international cooperation and effective international institutions.
These challenges maintain their terrible effects on fragile communities not to access to enough prosperity especially in the said countries.
Consequently, focal point of the international organizations which responsible for economy, growth, finance and security is to try to secure and achieve enough growth and jobs; fiscal consolidation, structural reforms and monetary policy, also overcoming institutional and governance challenges, urban settlements and investing in infrastructure and in agricultural productivity to provide breathing space.
However, despite these harmful developments, the global financial system is regarded more stable than it was six months ago, but a number of challenges remain, according to IMF.
“While the outlook for developing economies is promising and downside risks have diminished in the short-run, global macroeconomic stability is not yet restored, unemployment is still high and food prices continue to be unstable and to bear down on the poorest,” the analysts say.
As for the Eurozone, ailment economy is persisting its effect. According to the latest indicators, France has entered its second recession in four years after the economy shrank by 0.2% in the first quarter of the year.
Unemployment in the eurozone has surged to a fresh record high, while inflation has fallen to a three-year low, so the European Central Bank (ECB) has cut its benchmark interest rate to a new record low amid ongoing worries about the eurozone's economic health. Maybe this new rate would be contributor in terms of consumption and investment in the zone. As for the US, lower growth is predicted would have a negative impact on the region, particularly in Mexico and Central America.
Across the world, Asian countries’ economies feature brighter than other regions to leverage the global economy.
China's economy, the second-largest of the world, has slowed and performed worse than many analysts expected in the first three months of the year.
Despite slowing down in its economy due to setback in the global exports and trade, Chinese economy is regarded the most robust economy in the world. In order to cushion its current situation, Beijing has acknowledged that situation and indicated that it wants to increase domestic demand to reduce its dependence on exports and achieve more sustainable growth.
Within this negative conjuncture; the long standing crisis, conflicts and strife across the world remain as a barrier in accomplishing the MDGs of which deadline will end up 2015…
The global actors envisage that they need to act decisively to look after a sustainable recovery and restore the resilience of the global economy. So as to overcome the troubles across the world, it is foreseen an environmentally, socially and economically sustainable manner are required.
As for the assessments of the economics authorities for the global growth in 2013, the economic indicators would be nearly the same in 2012.
The wellbeing, peace for current and future generations depend on sustainable achievement in terms of the above mentioned troubles.