Introduction:
The beginning of 2007 offers a conflicting picture of the global economy for those trying to discern trends, challenges and opportunities. Concerns about energy security and climate sustainability are converging-finally bringing consensus in sight on the need for action in the United States, but prospects for breaking the global stalemate are still years away. While some developing countries are succeeding in bringing hundreds of millions out of poverty, too many are still mired in a doom spiral of conflict, poverty, and disease- despite the entry of new philanthropists, advocates and global corporations into the field of development.
This “top 10″ is intended to mark core issues and shed light on opportunities and challenges with a broader and longer-term perspective.
1.Energy and environmental security:
Confounding the international policy challenge is the disproportionate impact of high oil prices and global warming across nations,insulating some countries from immediate concern while forcing others to press for more rapid change.
2.Conflict and poverty:
In a world where boundaries and borders have blurred, and where seemingly distant threats can metastasize into immediate problems, the fight against global poverty has become a fight for global security
3. Competing in a new era of globalization:
Is the new episode of globalization just another wave or a seismic shift? While individual elements feel familiar, the combined contours are unprecedented in scale, speed, and scope.
4.Global poverty:
The challenge of global poverty is more urgent than ever: over half the world’s population-nearly 3 billion people-lives on less than $2 per day; nearly 30,000 children die each day-about 11 million per year -because they’re too poor to survive. With such a toll, addressing poverty in new and more effective ways must be a priority for the global policy agenda. Fortunately, a variety of new actors are bringing new perspectives, new approaches and new energy to the challenge
5.Global governance stalemate:
To resolve the world’s most pressing problems, which touch all corners of the globe, we must adapt our global governance approaches to be more representative and thus more effective by encouraging and enabling the key affected countries to take an active role in generating solutions.
6. Global health crises:
Despite improvements in the world’s collective ability to battle disease with advances in medicine and technology, global health needs remain unmet, making the entire world vulnerable to health crises. In particular, the poor continue to suffer disproportionately from inadequate health services, exacerbating their struggle out of poverty
7. Global corporations,global impact:
The private sector is becoming a significant player-indeed some might say the dominant player-in shaping the global economic and development agenda. Multinational corporations with operations that span the globe, and in some cases capacities and networks that match those of governments, have a particularly important role to play in helping to spread the opportunities and mitigating some of the risks of globalization.
8. Economic exclusion in the middle east:
The Middle East has before it what could be one of the greatest demographic gifts in modern history-a potential economic windfall arising from a young and economically active workforce.
9. Rise of new powers:
The rise of “emerging powers”-a group that usually includes the so-called BRICs (Brazil, Russia, India, and China), but which sometimes is applied more broadly to include South Africa, Mexico and others-is reshaping the global economy and, more gradually, international politics.
10. Global imbalances:
Some worry that the world is at a tipping point, where only a dramatic shift in economic policy can alter the looming trajectory. Others see underlying structural factors perpetuating gross imbalances for a sustained period.
Knowledge economy:
The game today is knowledge, and the only winning strategy is finding innovative ideas and employing them before your competitors do. The organizations that succeed in this game put no national or geographic limits on the quest for knowledge. They go where the people are. Potential competitors do have an awesome opportunity.
Just a few years ago, the press warned multinationals to innovate or die. Today, their headlines have a different spin – globalize or die. The world may be flat but it’s not deep. Flat is surface. The human experience is more. Are we outsourcing the personal human scale experience for the sake of multinational corporations’ expansions? Whether the world has flattened or continues to create centres of excellence, it is quite clear that countries, developed or developing, must become competitive in tapping into the world’s six billion minds if they want to be part of the knowledge economy
An Idea about globalization:
· Globalization is leaving a lasting impression. While not perfect, globalization has been extremely successful. It has created millions of jobs, raised millions out of poverty and improved the quality of life in countries that once were considered incapable of contributing to the world economy.
· Indeed, the benefits of globalization and global outsourcing are far reaching. With shared interests in building robust markets, generating greater profits for all and building stronger relationships, East and West are more interdependent upon one another than ever before.
· Emerging economies have enhanced the world’s infrastructure to deliver services in any geography based on a concept of real value-based virtual organizations. Capital flows might move further in favour of emerging economies prompting major currency realignments.
· Virtually all large-scale US and European companies outsource some or all of their information technology activities. Global outsourcing is fast becoming one of the greatest organizational and industrial shifts in modern history.
HOW TO MANAGE IT:
· I’ll particularly focus on the necessity of a well-trained and flexible workforce.
Critical to building a flexible labour force is, as always, the education and training of young people. We must not only invest in basic education for our children. We must also prepare for an economy where most workers will expect to train and re-train throughout their careers; an economy where it will be considered normal to add skills or change career paths through life.
· Global growth prospects have deteriorated sharply. At the IMF, They now project that the world economy will grow by only 2¼ percent next year, and that advanced economies will contract by ¼ percent over the same period. We now anticipate that emerging economies will expand by 5 percent in 2009, although with considerable regional variation and significant downside risks.
· Monetary and fiscal initiatives to help support global demand are also being pursued. Indeed, with inflation receding, central banks in advanced and emerging market countries have also taken steps to ease monetary policy.
· Therefore, fiscal policy, where feasible, will also play a role in helping to support domestic demand. The counter cyclical fiscal policy is not necessarily advisable in all countries, particularly in those with greater vulnerabilities or where debts.
CONCLUSION:
Finally, the Fund has an important role to play in strengthening the financial architecture. Indeed, the crisis has made it clear that new thinking and actions are needed to:
(i) improve the design of financial regulation;
(ii) strengthen systemic risk assessment; and
(iii) develop more effective coordinated response mechanisms.
With that in mind, we are strengthening our early warning capabilities. We are also eager to strengthen our collaboration with others to develop new and better operational tools for macro-financial surveillance.
Submitted by
S.Padmavathi &
G.P.Divya,
Lecturer (M.B.A)
SSM Academy of textile management, Erode.
By: S.Padmavathi
© 2012 Environmental Management
