{"id":94,"date":"2012-05-19T12:57:00","date_gmt":"2012-05-19T12:57:00","guid":{"rendered":"http:\/\/lucilleossai.com\/Blog\/index.php\/2012\/05\/19\/the-impact-of-globalisation-on-the-world-stage-part-2\/"},"modified":"2022-10-18T15:02:09","modified_gmt":"2022-10-18T14:02:09","slug":"the-impact-of-globalisation-on-the-world-stage-part-2","status":"publish","type":"post","link":"https:\/\/lucilleossai.com\/blog\/2012\/05\/19\/the-impact-of-globalisation-on-the-world-stage-part-2\/","title":{"rendered":"The Impact Of Globalisation On The World Stage (Part 2)"},"content":{"rendered":"\n
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Globalisation Under The Microscope: The World Stage<\/strong><\/h2>\n\n\n\n
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The impact of globalisation is not restricted to the corporate world with its employment relationships. Being a ‘global\u2019 phenomenon, it has implications for world economies by virtue of its components of co-existence, relationships, cooperation and interdependence. These components continually cut across all facets of our way of life, such as via technology and trade, as well as through economic, financial, social and cultural dimensions. This means that a significant crisis originating from an economic super-power such as the United States (U.S) could have far-reaching effects on countries in other continents. To buttress this point \u2013 the Global Financial Crisis, which escalated in 2008.<\/p>\n\n\n\n

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The Global Financial Crisis in 2008<\/strong><\/h2>\n\n\n\n
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World map showing real GDP growth rates for 2009. (Countries in brown were in recession).<\/p>\n\n\n\n

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According to the Wikipedia website, (whereby significant documentation, papers and statistics were provided and is thus the basis for most of the information provided in this study), the late-2000s financial crisis, also known as the \u201cGlobal Financial Crisis\u201d, or the \u201cGreat Recession\u201d, is considered by many economists to be the worst financial crisis since the Great Depression of the 1930s.<\/p>\n\n\n\n

It resulted in the collapse of large financial institutions, the bailout of banks by national governments and downturns in stock markets around the world. In many areas, the housing market also suffered, resulting in numerous evictions, foreclosures and prolonged unemployment. It contributed to the failure of key businesses, declines in consumer wealth estimated in trillions of U.S dollars, and a significant decline in economic activity, leading to a severe global economic recession in 2008.<\/p>\n\n\n\n

The financial crisis was stated to have been triggered by a complex interplay of valuation and liquidity problems in the United States\u2019 banking system in 2008. The \u2018bursting\u2019 of the U.S housing bubble, which peaked in 2007, caused the values of securities tied to U.S real estate pricing to plummet, damaging financial institutions globally.<\/p>\n\n\n\n

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Survival tactics<\/strong><\/h2>\n\n\n\n
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Economies worldwide slowed during the stated period, as credit tightened and international trade declined. Governments and central banks around the world responded with unprecedented fiscal stimulus, monetary policy expansion and institutional bailouts.<\/p>\n\n\n\n

Capital injection by governments was made systemically as was the case in the United Kingdom, while various central banks worldwide cut interest rates to help borrowers.<\/p>\n\n\n\n

In Nigeria, (after the crisis), subsequent  focus on stricter regulations comprising  global reporting standards and enhanced risk management, has led  market watchers, in recent times, to be optimistic that the Nigerian banking sector will most likely wax stronger as time elapsed. Nevertheless, financial experts have stressed the need for the Central Bank to review all relevant laws relating to the financial sector in order to strengthen its regulatory capacity*.<\/p>\n\n\n\n

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Causes<\/strong><\/h2>\n\n\n\n
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Many causes, reasons and explanations for the financial crisis have been suggested, with varying weights assigned by experts.    <\/p>\n\n\n\n

Notable however, is the Levin\u2013Coburn Report<\/em><\/strong>, issued in 2011 by the United States\u2019 Senate. It found that the crisis was not a natural disaster, but the result of the following:<\/p>\n\n\n\n

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  • High risk, complex financial products<\/li><\/ul>\n\n\n\n
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    • Undisclosed conflicts of interest<\/li><\/ul>\n\n\n\n
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      • Failure of regulators, the credit rating agencies and the market itself to rein in the excesses of Wall Street.             <\/li><\/ul>\n\n\n\n
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        Repercussions around the globe<\/strong><\/h2>\n\n\n\n
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        In  my opinion, the 2008 Global Financial Crisis was a perfect example of the \u2018domino effect\u2019 of globalisation.<\/p>\n\n\n\n

        It highlighted a development whereby a significant crisis in the U.S triggered a global financial meltdown, with disastrous consequences experienced in other parts of the globe, examples of which were the following:<\/p>\n\n\n\n

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