Lekshmi Nair – The global financial crisis is now hitting countries all over the world. Because of the crisis, there has been significant decline in the prospects for conducting international business and foreign direct investment (FDI) in many countries. Many industries that were very good performers historically have got affected by the decline in FDI flows. The most affected industries to date are the financial services and manufacturing industries including automotive industries, building materials, intermediate goods and some consumption goods.
Archive for the ‘Financial Crisis’ Category
Global Financial Crisis, FDI and the Effectiveness of Protectionist Measures in Preserving National Interests
Friday, October 2nd, 2009Tracing the Root Causes of the Economic Crisis: Labour and Trade
Friday, April 10th, 2009The biggest lesson we may learn from the current global economic crisis is that mainstream economic theories that have guided thinking for the last four or so decades have serious flaws. In sum these theories advocated the idea that things should be left to the markets and, the market via, the “invisible hand” would ensures that gains from trade and investment liberalization would “trickle down” to society. However, significant evidence, which had largely been ignored before, suggest that there was inadequate trickle down and, in some cases, there was “trickle up”, that is, resources flowing from the poor to the rich.
2 Women and 18 Men: The G20 Summit
Wednesday, April 1st, 2009Two women (Merkel of Germany and Kirchner of Argentina) and their 18 male colleagues from the other G20 countries are meeting in London tomorrow to try and lay out a roadmap for addressing the global financial crisis. The London Summit is supposed to focus on stabilising the world economy and laying the foundation to restore growth and jobs. Stimulus packages, global financial regulation, trade financing as well as trade protectionism are all on the table. Because countries like China, India and Brazil are in the group the G20 boasts of not only representing more than 85% of the world’s GDP but also about two thirds of the world population.
