A Hostile World
When we think of a global economic system we would like to envision a world free of the retching poverty, disease, and the corruption of political systems. A world free of the economic instability of some countries where the selfish dominance of leaders refuse to ease the suffering of their people. A world where peaceful negotiations take president over violent confrontations.You just have to look to nations like Syria, and even now after the over through of Gadaffi where in Libya anarchy is the rule of law to find that achieving any semblance of global economic stability humanity has a very long way to go. In Sudan massive famine is destroying any hope of order. Egypt like in Lybia, after over-through is left in a continued state of unrest. There are other countries whose leaders hide behind cloaks of deception in order to stay in power while some other nations are dominated by those whose wealth and power control the destines of others. All told the world today is inundated with leaders of nations who continue to deny their populations basic liberties.
To put all this in perspective, look at what has happened in the United States during the first decade of the 21st century. When 9/11 occurred America was thrust into realizing that we really are very vulnerable and not as secure as we once thought. The reaction and response to that carnage on 9/11 took the United States on a path toward massive deficits which turned into an economic free fall. The Sub-Prime mortgage crisis only solidified and exasperated the growing national debt. Now today, just when the United States is beginning to see the storm clouds of economic despair recede along comes the another front of financial uncertainly. It has been 4 years since the mortgage mess and the summer of 2008 when the United States faced gasoline prices that virtually wiped out personal bank accounts just to fill up gas tanks. And yet, our fearless leaders did again, virtually nothing to prepare the majority of Americans to the reality that gasoline prices do fluctuate and eventually escalate as with the price of everything else.
There are three major factors that continue to undermine the economic structure of the world today; 1. The World Bank and the International Monetary Fund, 2. The World Trade Organization, and 3. The North Atlantic Free Trade Agreement. All three though well intended when first implemented have become very ineffective due to the continued unrest of societies all over the globe. The failure to adapt to ever evolving contingencies has undermined the stability of economies. Greece is still a vestige of economic plight even after all the monumental bail-outs. Some would say the the United States is like Greece in the aftermath of governmental bail-outs to the very same financial institutions that caused the most notorious financial disaster of our time. For all the billions of dollars that put Americas debt even further in the hole the economy is still in crisis mode. When factored in the gas crunch like 4 years ago only compounds the the financial dilemma facing millions of Americas.
The World Bank and The International Monetary Fund are the biggest financial lenders in the world today, the problem is they are also the biggest loan sharks. They have continually kept poorer countries impoverished while at the same time they keep helping multinational corporations exploit nations natural resources particularly in Africa. This does nothing to ease the vast suffering of people all over the world and further diminishes the prospect for further economic growth and nations stability. What is needed is for the World Bank and the International Monetary fund to work together with the United Nations in setting up loan programs for countries that need the tools and resources to successfully stabilize and grow their economic structure. These loans could be micro or full loans used for education, infrastructure development, and technology implementation.
The World Trade Organization was set up to foster economic growth between all nations, but since the world is still plagued with turbulent and intensifying crisis the prospect for economic growth appears grim. Like the WTO the North Atlantic Free Trade Agreement has done just the opposite of what it was intended to accomplish. It has left the agriculture industry with monumental job losses, made life saving medicines unaffordable for people in poorer countries, and lowered health, safety and environmental standards everywhere. Negotiations have already taken place to expand NAFTA by creating trade zones from Argentina to Alaska. This allows NAFTA the ability to give corporations rights to reduce natural resources in Mexico, Canada, and even in the United States. All resulting in further loss of jobs and reduction of environmental and health standards everywhere.
A key player on the international scene is China. Back in 1990 China's government implemented policies that enabled them to become the least expensive most proficient manufacturing country in the world. Today, they have succeeded. One of the biggest problems though in China is that the divisions between the prosperous cities and the long stagnant economic deprived rural areas threaten the long term stability and growth of China. This in turn results that the rest of the worlds economic stability still remains in serious jeopardy.
From 1993 - 2008 the United States alone lost more than 3 million jobs due to the North Atlantic Free Trade Agreement. The rising United States trade deficit has cost more than 4 million actual and potential jobs since 1994. The US trade deficit with China alone is over $200 Billion and counting. Still in China workers continue to be denied basic workers rights. The plight of Chinese workers at some of their manufacturing facilities like Foxcon underscores some of the harsh realities that so many in China face. As a result in China even with all their manufacturing capabilities lies an economic catastrophe that is taking shape today. If changes are not made soon the global economic outlook remains bleak.
What is needed today is for the United States to step up and renegotiate the North Atlantic Free Trade Agreement where instead of a Free trade agreement usher in an Equal Trade Agreement. This would ensure that all countries contribute the resources needed to promote economic growth while at the same time preserving the environment. The next step the United States must join with Mexico to foster industrial growth thus improving the available employment opportunities with real living wages. Only when people are employed with incomes to match the cost of living in any area will crime and corruption be reduced. The United Nations with the World Bank have to create an international regulatory system that monitors and challenges all national regulatory systems to prevent another economic crisis.
America must lead the way for a successful global economic network between all nations and that starts at home. We are already headed in the right direction but it will take perseverance and persistence to overcome the daunting task that lies before us. Simultaneously the United States has to reduce our trade deficit not only with China but with Japan and other Asian nations. Once America achieves balance will the rest of the world begin to realize more economic growth and strive for political and national stability. This starts with ushering in National Economic Reform with it's ten articles of confederation. Ten articles that deal directly with solutions to solve the many issues that threaten the stability and security of not only the United States but but other nations as well.