After the great depression that was happened in the 1930s, the second global economic crisis appeared late 2000s affecting the world. Since the beginning of the financial crisis to date, although a 7-8 year passed, but the expected recovery has not been achieved. Primarily breaking out in the USA, and then infected European economy.
Why the global crisis could not be overcome? Because of global village experiences many problems that require universal structural reforms to solve.
Across the world the negative developments, strife, uprisings, terror in various regions are continuing to affect economic activities badly in the aspect of those countries and so the entire world.
These countries have been left truly in consumer position. There is no enough production and growth. Despite human misery during the Great Depression of the 1930s is regarded far greater. But now the said countries’ people have been experiencing human misery worse than the Great Depression.
If this assertion can be taken into account in the face of today’s condition, millions of people suffer from poverty, hunger, strife although the world has achieved much more richness over the 1930s.
Unemployment in the 1930s was higher and in the absence of a proper social security net, those who had been unemployed faced living on the breadline with only a very meagre unemployment allowances.
But now some peoples cannot be able to lineup on the breadline regarding having no life safety...
When we assess the role of crude oil in the global economy, of course it has been taking a crucial duty in the growth.
Since the mid of twenty century onwards oil has played one of the key role of economic activity across the world, regarding its outstanding importance in the supply of the world’s energy.
However, this paradigm is now going to transform because of conjecture of the world.
In this change, global warming, climate change and environment pollution, as well as key resources which are used in production have a crucial role. This change also urges the world gradually to shift from the fossil energy resources to renewables.
Wind plants, hydroelectric plants, hydrogen and solar energy plants might increasingly replace the fossil fuels in the future increasingly. As long as this transformation maintains its effect, the role of crude oil would diminish in the global economy.
Nevertheless, lower oil prices would contribute global growth; due to oil is currently a basic input of production. Meanwhile, if a permanent solution cannot be found for the countries in MENA region, a stable growth increase would not be possible.
The World Bank expects lower oil prices would contribute to global growth and temporarily reduce global inflation in 2015. This condition is also expected to generate significant real income shifts from oil-exporting to oil-importing countries.
Consequently, the world has been in a change situation in a few respects.