The year 2011... The whole world is gripped not by the fear of natural disasters, disease and wars but by the fear of a double-dip recession, defaults and moratoriums. The horror has now spread from the United States to Europe. Even countries on the other side of the globe are worried about the domino effect on their economies.
"The world has entered a new economic danger zone"
- Robert Zoellick / President, World Bank
Many experts say that if we fail to deal with the crisis now, our fear will become a reality, resulting in a global economic disaster.
"We are pressed for time. Let's at least avert Armageddon!"
- From President Obama's weekly address on July 16, 2011
The world of Armageddon... It might be the time for us to make our final choice.
Crisis or Opportunity for Global Economy?
1. The United States, the epicenter of the global economic crisis
Outraged people carrying pickets are gathering in Wall Street of New York, the global financial hub. What they are demanding is not peace but jobs and economic justice.
The reason behind the public outrage in the United States lies in the statistics. About 83% of U.S. corporate shares are held by the richest 1%. One out of 200 Americans are homeless and some 1.5 million Americans went bankrupt last year alone. The incumbent administration tackled the situation by providing tax cuts to the richest 1% and cutting budget allocated for the remaining 99% of the population.
2. The Euro zone, another peril
The euro crisis, which began in Greece, is another factor that adds to the spreading horror. The euro crisis will only worsen if the U.S. economic crisis keeps deteriorating, because these two regions are intertwined with each other like a spider web.
The Wall Street rally has been spreading rapidly to the euro zone. In some areas, rallies are held simultaneously.
3. Time for a turning point... G20 is at its center.
With the U.S. and developed European countries being largely blamed for the global economic crisis, many emerging countries are receiving the spotlight. Among them are BRICS and Korea who have been accumulating financial wealth. By 2020 their GDP is expected to surpass that of developed countries. The global economy cannot be rescued solely by the efforts of the U.S. and several European countries. Help from emerging economies has become indispensable following the power shift in the world economy. That is why the G20 was created.
4. Will the G20 Cannes Summit become a turning point for the global crisis?
The G20 Cannes Summit is soon to take place. The euro zone crisis and the global financial network top the agenda of the summit, but attention is also focusing on whether the U.S. and China will manage to reach a consensus on the currency issue. Will the G20 Summit find an answer to the current situation? It depends on whether the involved nations will agree to renounce selfishness and make concessions to one another. The answer is clear - compromise for coexistence.
5. The next goal set for the world by Korea - shared growth
Korea was the first nation to propose the discussion of "coexistence" and "shared growth" at the G20 Summit. Last year, Korea brought up the issue of "development" and began spreading the seeds of shared growth the world over through the Seoul Communique. Korea has become a symbol of balanced economic development and shared growth as well as a hope for developing nations.
The global economy is in a perilous situation. It is either coexistence or codestruction. Only wise choices made by world leaders at the G20 Cannes Summit will turn this crisis into an opportunity.