Is recession good for the world?
Probably! Reckless and unrestrained disbursal of loans to the persons, who hardly have any repayment capability, has brought about the world to its present situation. What started as trickle has now become a storm and has engulfed the entire world.
Earlier, India and China had maintained that brewing storm will not destabilize their economy. But reality is altogether different. Both these countries have been hit hard. Their economies have slowed down. The stock markets have crashed. There is gloom and darkness all around. But why I am narrating this. This is a well accepted fact and everybody knows about it. So what is the point in retelling the story again and again? What are we trying to prove?
There is a silver lining which very few people have been able to see and take note of. This is about the life after the gloom and doom. It appears that either the bottoms have been hit or world economy is close to hitting the bottom. From here only movement will be towards up. The slope of the upward curve will depend upon how the world gets integrated and brainstorm to implement the common agenda. No isolated strategy will help. Any plan or strategy will have to have China and India along with US taking the centre stage. Both China and India are having infrastructural deficit. Growth avenues will be negligible in developed countries. Therefore, all big players in the global economy will have to move to these two Asian giants to be partners in growth and prosperity which these two countries beckon. But there is a strong need to review the regulatory practices which are in practice in global financial system. World will be a safer place to live, once these controls are in place.
May also like to read: How we can prepare ourselves to see beyond recession
