Global Issues

BS Economics 7th
Global Issues
There are many global issues to remain front and central. A few of
them are listed below:
1. Energy and Environmental Security
2. Conflict and Poverty
3. Competing in a New Era of Globalization
4. Global Imbalances
5. Rise of New Powers
Global Issues
6. Economic Exclusion in the Middle East
7. Global Corporations, Global Impact
8. Global Health Crises
9. Global Governance Stalemate
10.Global Poverty: New Actors, New Approaches
Energy and Environmental Security
Energy and environmental security has emerged as the primary issue on the
global agenda.
Consensus has developed for long-term economic, national security and societal
damage from in-secure energy supplies and environmental catastrophe, so there
is intense need for technological advances that can provide low-polluting and
secure energy sources.
There is still little agreement on the best set of actions required to reduce global
dependency on fossil fuels and greenhouse gas emissions.
Countries have disproportionate impact of high oil prices and global warming
across nations, insulating some countries from immediate concern while forcing
others to press for more rapid change.
Conflict and Poverty
In a world where boundaries and borders have blurred, the fight
against global poverty has become a fight for global security.
Global leaders increasingly focused on the link between poverty and
conflict.
Military conflict have a role in spread of poverty and crises.
Violent conflict contributes to poverty by causing: damage to
infrastructure, institutions and production; the destruction of assets;
the breakup of communities and social networks; forced
displacement; increased unemployment and inflation
Competing in a New Era of Globalization
A third era of globalization is slowly coming into view.
It seems to involve the rise of regional powers throughout the world,
commensurate with rapid growth in their respective economies (think of
China, Nigeria, Brazil, Indonesia, and others).
Globalization leads to increased competition.
This competition can be related to product and service cost and price,
target market, technological adaptation, quick response, quick production
by companies etc.
When a company produces with less cost and sells cheaper, it is able to
increase its market share, otherwise there is huge influx of imports which is
leakage to economic growth.
Global Imbalances
Today’s inter-connected world is in uncharted territory
The world’s sole hegemonic power, the United States, nurses an
addiction to foreign capital, while up-and-coming powers such as
China and oil exporters sustain surpluses of increasing magnitudes
Some worry that the world is at a tipping point, where only a
dramatic shift in economic policy can alter the looming trajectory
Others see underlying structural factors perpetuating gross
imbalances for a sustained period
Rise of New Powers
The rise of “emerging powers”-a group that usually includes the so-called BRICs
(Brazil, Russia, India, China, and South Africa), Group of Eight G8 (Canada, France,
Germany, Italy, Japan, Russia, the United Kingdom, and the United States) are re-
shaping the global economy as well as international politics (G8+5).
Growing much faster than the rest of the world, these economies are changing
the structure of international production and trade, the nature and direction of
capital flows, and the patterns of natural resource consumption.
At the same time, the growth of these countries is beginning to shift the global
distribution of power forcing the great powers to come to terms with the reality
that they will need to share management of international rules and systems in
the coming decades.
Economic Exclusion in the Middle East
• The Middle East has before it what could be one of the greatest
demographic gifts in modern history-a potential economic windfall
arising from a young and economically active workforce.
• Today, young people aged 15- to 24- years old account for 22 percent
of the region’s total population, which is the highest regional average
worldwide.
• With the right mix of policies, this demographic opportunity could be
tapped to spur economic growth and promote stability.
Global Corporations, Global Impact
• The private sector is becoming a significant and the dominant player-
in shaping the global economic and development.
• Multinational corporations with operations that span the globe have
capacities and networks to influence the governments.
• Multinational corporations have a particularly important role to play
in helping to spread the opportunities and mitigating some of the
risks of globalization
Global Health Crises
• From responding to the threat of pandemic Covid 19, to efforts to
control the spread of HIV/AIDS, the world has begun to realize that
global health issues are relevant for any citizen, regardless of
nationality.
• Despite improvements in the world’s collective ability to battle
disease with advances in medicine and technology, global health
needs remain unmet, making the entire world vulnerable to health
crises.
• In particular, the poor continue to suffer disproportionately from
inadequate health services, exacerbating their struggle out of poverty.
Global Governance Stalemate
• Today’s global challenges-nuclear proliferation, the deadlock of global
trade negotiations, the threat of pandemic Covid-19, and the fight
against global poverty-cannot be solved by old international
institutions.
• To resolve the world’s most pressing problems, which touch all
corners of the globe, we must adapt our global governance
approaches to be more representative and thus more effective by
encouraging and enabling the key affected countries to take an active
role in generating solutions.
Global Poverty: New Actors, New Approaches
• The challenge of global poverty is more urgent than ever: over half
the world’s population-nearly 3 billion people-lives on less than $2
per day; nearly 30,000 children die each day-about 11 million per
year -because they’re too poor to survive.
• With such a toll, addressing poverty in new and more effective ways
must be a priority for the global policy agenda.
• Fortunately, a variety of new actors are bringing new perspectives,
new approaches and new energy to the challenge.