tag:blogger.com,1999:blog-11262944.post-1128933206370465552005-10-10T14:03:00.001+05:302008-07-13T16:50:09.141+05:30Economic TsunamiAs mentioned in one of my earlier post, commonly held belief that if we don’t meddle with nature, Nature would ensure survival of human race – is not correct. Our universe is a violent and unstable place born in violent Big-Bang and brought up in equally violent events like supernova bursts etc. It’s not natural for life to develop and survive in such a universe. Life is too fragile and too freak a phenomenon to be infinitely sustainable. <br/>World economy is also a similarly unstable and ruthless phenomenon. <br /><br />Our understanding of it is rather sketchy. What makes it tick and what makes it go into cycles of depression is hardly understood. There are theories in this regard but none has predicted the next disaster – which is the real test for any theory to be true.<br/>Globalisation of world economy (The flat world) is forcing the fault lines of world economy to realign, without our knowing it. The changing political balance of power in post cold-war period is another unsettling force.<br/>Earlier in segregated economies a meltdown in one country did not affect others. Thus the world as a whole could climb back out of the abyss.<br/>Globalisation and overheating of economy and fast pace of its growth in China etc. could lead to a world-wide economic meltdown. It will be difficult to climb out of such a global economic tsunami.<br/>We should concentrate on understanding the forces shaping the global economy with as great urgency as possible.<br/>What do you think? Please leave a comment.Girish Bhatnagarhttp://www.blogger.com/profile/00831896139183058366noreply@blogger.com0