Tuesday, August 9, 2011

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.

Amplify’d from www.reuters.com

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.

Read more at www.reuters.com

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