A recent article in The Guardian summarized what most of the world already knew: there are serious concerns over the future of the global economic system. Many people around the world realize that the costs of a global economy include extended unemployment and a variety of other concerns.
Although these concerns aren’t usually at the forefront of most citizens minds when buying a cheaper version of a new product, they are going to immediately think about the jobs that were cost on the home-front to bring that lower price to them. However, they are still aware of the overall trend and are challenging the future of globalization. Many people have challenged the practices implemented by tech giants such as Apple.
Apple insists that it cares deeply about every employee it has in its supply chains all over the world. As the company faces more criticism, it is conducting a number of inspections on its factories all over the world. As the public states that it is no longer interested in accepting the dark side of corporations in the global economy.
The world’s perception of the world economy has greatly changed since the fallout that began with Lehman Brothers. Before the damage to the global economy, only a slight minority spoke against the trends towards globalization. Most people believed that the benefits of globalization outreached the costs and would create a more efficient and productive economy for all members.
However, the first world has since been forced to undergo a major structural change which has led to extended unemployment and stagnant growth. When countries throughout Asia underwent the same dramatic changes nearly twenty years earlier, they were dismissed as poor managerial practices and ineffective government policies. However, more developed nations such as the United States, United Kingdom and Germany have since changed their tune as they feel the bitter sting that can be brought by a global economy.
Meanwhile, many nations that once struggled with the developments of globalization are now thriving. The economic stronghold is shifting to the Eastern world as nations outsource their work to service providers in nations such as the Philippines, India, China and Malaysia.
Nations have since come to accept that the new developments cannot be fixed by a few alterations in banking and economic policy would fix the world economy. When that failed, the central banks stepped in and played what role they could. Unfortunately, these efforts have failed to deliver the results they were looking for.
The world economy struggles to get back on its feet, but there is little progress on fixing the stagnant economy. The world looks for new solutions, but is starting to realize that it will be forced to accept major reform will be necessary and world citizens will need to change their expectations for the global economy.
