World Economy: Public in Support of Economic Reforms

By: CaraTan   Date: 20 March 2009

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London, 20 Mar. A survey by the BBC World Service shows that more than 70% of 29,000 people around the world feel widespread reform in the international economic system is needed. The survey results were released on 31 March 2009 and represent people from 29 nations.

50% of the respondents think the global economic slowdown will last more than two years, and 62% believe the downturn has had an effect on them.

With the G20 summit ahead, 65% of people from the G20 nations would be in favor of major changes to the economic system.

This indicates that if such reform were announced in London’s G20 summit the majority of the public would back it. The exceptions are respondents from Japan, Russia, India, and Mexico – all G20 nations.

In the Philippines, almost 90% support this international economic reform, while about 85% support it in Kenya and France.

EconomyWatch correspondent Vladimir Gonzales commented, “People may support global economic reform but many are terribly afraid of nationalization, especially in the US. They are afraid of socialism and a loss of entrepreneurial opportunities. It is these people we hear yelling about moral hazards.”

Nevertheless, the poll showed more support for domestic economic changes in the US than international reform.

Most of the poorest developing countries are in strong favor of globalization and change, such as Kenya and the Philippines. Other emerging economies, which have reaped the benefits of the global growth in past years, are not in favor of this international reform. Such nations include Nigeria and Russia.

The nations that have felt the negative economic effects the most are not surprisingly the developing countries. They are most vulnerable as a small increase in prices or a small decrease in income affects them more profoundly then the rich.

Despite this, the US had the greatest percentage of respondents that said they had been severely affected – 32%. This was only 3% in Germany.

The increase in global commodity prices has caused the price of food to be a major concern in Kenya, the Philippines, and Egypt, even as these prices have eased in recent months.

The survey was conducted by GlobeScan for BBC. Sample size was 29,913 in 29 countries, in major urban areas. The margin of error per country ranges from +/- 2.4 to 4.4%.

Hiroko Mirafiori, EconomyWatch.com

 


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