Global Slowdown - Aftermath and Anarchy

Have you ever realised that man remains generousalready committed the crime as World Bank and
and accommodating to his fellow beings only till theWTO reports suggest? Good intentions alone cannot
time he himself is well-heeled? Basically affluence ishelp nations to work against trade barriers. Local
the breeding ground for magnanimity andpolitics and question of survival of politicians will push
philanthropy. And since nations are guided by men,nations towards trade conflicts. Once trade barriers
you can expect similar behaviour from all nations. Butare in place we shall see replay of scenes from Great
what happens when nations themselves are ravagedDepression of 1930's. It is commonly believed that
by depredations of recession and economic collapse?passage of Smoot-Hawley Tariff in the USA brought
In order to seek answer to this question we need tothe global economy down then. Will it be different
logically predict the turn of events from thethis time around? I wonder.
symptoms as visible today.If trade war rages on a global scale, world trade will
The first thing that this truly global recession will bringcome to a grinding halt. In fact now itself, without
about is trade wars. It still hasn't started in full scaleany significant trade conflict, global demand has
but the writing is on the wall. World Bank hascollapsed. WTO has forecast that global trade, as
recently announced that 17 countries from G20 havemeasured by volume, will decline by 9% this year.
already taken some protectionist measures againstSuch a devastating fall has not been seen in the last
foreign competition to survive the recession. World60 years. And this decline is not attributed to trade
Trade Organisation report has confirmed last weekconflicts. Just imagine what will happen to global trade
that there has been significant slippage towardsonce trade wars are declared by nations!!!
protectionism from richest countries.Time is running out for world leaders who wish to
As the global economic crisis deepens, the shadow ofavoid global catastrophe. Leaders of G20 nations
trade war will lengthen. No wonder trade was one ofhave to use innovative ideas to avoid trade wars,
the main topics at the G20 Meet on 02 Apr 2009 inand they must be utterly sincere in implementation
London. G20 Meets issue out strong statementsand enforcement of the same. Like it or not, brutal
against protectionism from time to time, but will thetruth is that today the world depends on leaders of
G20 nations themselves abide by the rule book ofG20 nations to steer it away from Global Depression.
WTO in their own countries? Haven't most of them