When all the major global economies recorded growth together for the last time, we didn’t have the ‘Android’ technology, the US didn’t have any ‘black’ president, Muammar Gaddafi was ruling Libya and Hosni Mubarak was serving as the president of Egypt…..
The next decade experienced the global financial crisis (2007-08), the economic (and political) crisis in Europe, falling oil prices and China’s prosperity. However, good times are back again in 2018 as all the major economies have experienced growth.
In its January 2018 Global Economic Prospects, the World Bank (WB) has mentioned that global economic growth might edge up to 3.1% this year after a much stronger-than-expected 2017. The WB also said that the developing economies could maintain a 4.5% growth rate in 2018, with activities in commodity exporters recovering well.

The fact is that no supernatural power rescued the world from the global financial crisis in 2007-08. Different countries have managed to overcome the recession in different ways. So, it is difficult to predict whether the global growth will be sustainable (despite the WB’s positive forecast).
A section of experts is of the opinion that the global growth still depends on only a few countries. They have also opined that the global growth will not be ‘universal’ and it will not be possible for people across the world to enjoy the benefits. Of course, it will not be the fault of the growth.
In its latest report published on January 31, Oxfam International said that the inequality gap widens throughout the globe, with the world’s richest 1% getting approximately 82% of the wealth. Oxfam expressed serious concern over the scenario, saying that it’s unfortunate that economic rewards were “increasingly concentrated” at the top.

It’s no wonder that all the major economies are maintaining a steady economic growth simultaneously. In the era of globalisation, each and every country has close economic ties with others, and economic prosperity knows no boundary. In today’s world, growth means an increase in foreign trade, production and employment opportunity. The entire world is waiting for these possibilities.
However, the most important question is: will this ‘happiness’ last long? No one can predict whether the world economy will receive another blow….. For us, it will better to find ways in advance in order to overcome such crisis. It is quite easy to realise the fact that the equation between the decline in growth rate and sufferings of the common people is not universal.
We can compare the situation in America with the Scandinavian countries. The impact of the recession on the Scandinavian countries was nominal mainly because of the level of social protection there. Those countries have always tried to fulfil the basic demands of the people. Sweden, Norway and Denmark collect a huge amount of tax from the rich and spend the money for the betterment of poor. The situation is completely different in the US, as we know the fate of ‘Obamacare’. Unfortunately, majority of the countries in the world follow the American policy.
As long as the economy follows the rhythm, there is no problem. But, this particular model is vulnerable in crisis situation.

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Published by Koushik Das

Koushik Das (born on May 16, 1976 in Kolkata) is a career journalist. Based in the Indian capital of New Delhi, Koushik writes mainly about foreign policies and current geopolitical issues, and rarely about other topics. His own political ideas are highly influenced by Antonio Gramsci, Louis Althusser, Michel Foucault, Michael Oakeshott and others. English philosopher and political theorist Oakeshott (Dec 11, 1901-Dec 19, 1990) says that “in political activity, men sail a boundless and bottomless sea. There is neither harbour for shelter nor floor for anchorage, neither starting-place, nor appointed destination. But we have to keep afloat”. (Rationalism in Politics, 1962) As a student of Political Science, Koushik loves to share his views on issues, which have great impacts on his thought process (and also on India, South Asia and of course on the global community), with his readers through his website – Boundless Ocean of Politics. By doing so, he tries to keep himself afloat. You will find some of his articles in https://inserbia.info/today/ (https://inserbia.info/today/author/kou_das13_i/), as he has been trying to assess the global geopolitics since 2003. You can also mail him at kousdas@gmail.com View all posts by Koushik Das