Analysis: Beyond debt woes, a wider crisis of globalization?

This Reuters article looks at global financial structures that outstrip the capacities of governments to manage and respond.

Genuine responses to the financial crisis must include observation at this level, rather than scurrying madly inside the confines of an obsolete mental framework.

LONDON (Reuters) – The crises at the heart of the international financial and political system go beyond the debt woes currently gripping the Western world and to the heart of the way the global economy has been run for over two decades.

A television journalist looks at a display board shortly after the local market opened at the Australian Stock Exchange in Sydney, August 5, 2011. REUTERS/Tim Wimborne

After relying on it to deliver years of growth,  lift millions from poverty,  keep living standards rising and citizens happy,  nation states look to have lost control of globalization.

In the short term, that leaves policymakers looking impotent in the face of fast-moving markets and other uncontrolled and perhaps uncontrollable systems — undermining their authority and potentially helping fuel a wider backlash and social unrest.


About Frank Kaufmann

Work in: * Religion and Peace * Values in knowledge and Information * Luxembourg * Ivory Coast Consult in: * Interreligious and international relations, * Writing, Editing, Publishing, * Teaching, Training, Education


Analysis: Beyond debt woes, a wider crisis of globalization? — 1 Comment

  1. In a global economy, capital moves across political borders like water. It will seek the places it can produce the greatest return for its owner. Raising taxes in a country drives out capital. Governments have to understand they do not have absolute power and can no longer play God and control economies like a King controls his feudal serfs. Governments also have to begin obeying economic laws just like everyone else.

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