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Page added on April 16, 2009

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Economic slump provides tinder for global conflicts

With more people pushed into poverty, the probability of armed rebellions increases around the world.

The new director of the National Intelligence Agency caused something of a stir last month when he warned Congress: “The primary near-term security concern of the United States is the global economic crisis and its geopolitical implications.”

On that theme, Hampshire College professor Michael Klare sees the world economic meltdown as already prompting “economic brush fires” around the world and worries whether these could prove “too virulent to contain.”

It seems as if the lyrics “trouble, trouble, trouble” from Meredith Willson’s “The Music Man” have become too real in today’s world.

Last November Robert Zoellick, president of the World Bank Group, noted that the global financial crisis would hit hardest the “poorest and most vulnerable” in the developing world. At that time, Mr. Zoellick calculated another 100 million people around the world had been driven into poverty as a result of soaring food and oil prices. These prices have eased. Nonetheless, hundreds of millions in poor nations must try to balance household budgets on incomes of $2 a day or less.

Now he’s forecasting the world economy will shrink by 1 to 2 percent this year, with difficulties possibly extending into next year. That’s much worse than the bank group’s forecast last year. It will be the first time world output has actually declined since World War II. And each 1 percent decline in developing-country growth rates pushes an additional 20 million people into poverty, Zoellick reckons.

“The political ramifications [of rising poverty] will be great



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