The modern day global economy is a highly interconnected one. With the increased connectivity the challenges before the global economy has achieved an altogether new dimension. On one hand is the positive impact of instant access to the global information network. On the other hand, market volatility is using the economic inter linkage channels to spread like wildfire.
The global economic challenges come from a host of factors. They include topics like poverty eradication, role of international bodies, containment of inflation, ways for controlling rising food prices, demand and supply trends in the world's food grains markets, factors impeding the global economic development, issues related to world trade and agflation to name a few.
2008 has began on a relatively sombre note as compared to 2007. The International Monetary Fund revised down the estimated world growth rate for 2008. This was a fall out of the US sub prime crisis. At present economies through out the world are facing stock market volatility and rising unemployment figures as an after effect of the US crisis. It seems that the world is headed towards a recession. Since globalization has done away with the insulation of markets, various market risks are getting magnified.
The world is yet to do away with the scourge of infant mortality, income inequality and poverty. Poverty y is basically a lack of entitlement to the basic needs of human sustenance.
As per estimates, around one billion people worldwide survive on less than a dollar per day. Over one billion do not have access to clean water. Basic sanitation facilities are absent for around 2.4 billion people. Around 5 million children worldwide die from starvation. Life expectancy of the African populace is around 35 years less than their US counterparts.
As per data released by UNICEF around 10 million children who were less than 5 years of age died world wide in 2006. Of them around 4 million were infants.
To sum up, the challenges before the global economy are by no means simple. Timely intervention in the form of appropriate policies and fiscal help from the world bodies are needed to tide over the crisis. No less important is the political will needed for the seamless implementation of the policies.
Poverty
Inflation
Inequality
Climate Change
“Rising Food Prices”, Threat to Global Economic Development
“Trade”, key to lower food prices
Agflation in the Global Economy
Trends in Demand for and supply of food grains
Role of International Organizations