Unemployment a major threat to global economy!

https://anticap.wordpress.com/2012/06/01/unemployment-in-the-second-great-depression/

It seems that the world has not learnt from the causes of last major financial crisis in 2008, the world economy in today in today is facing many challenges and rising scale of unemployment in many parts of the world is certainly one of the main challenges. This is a problem in both developed and developing world; unemployment is the US has fallen in 5% according to latest figures by United States department of labour (Labor Force Statistics from the Current Population Survey. [ONLINE]), similarly, the level of unemployment in India has been on the rise despite many foreign companies going over these to invest.

In the Middle East, the threat of unemployment is very real; today, the unemployment rate is approximately estimated to be 32 percent. First-time job seekers, mostly between 15 and 24 years of age, make up more than 50 percent of the unemployed. For women, the unemployment rate is nearly 50 percent greater than for men (The World Bank). This is a major threat in terms of development in the region and this has already caused major global imbalance so in order to get that balance back millions of jobs must be created not only in this region but all around global South countries. The implications are both social, economic and political so to ignore the role the youth can play in the society is a great danger to the stability of any society; the world is interconnected in more than one way than it has ever been so internationally the threats would be quite similar.

At the end of the day we have to remember that we live on this planet equally and everyone must take responsibility to protect it; the way the global economy is shaped in today is one that needs reconsideration as there are many challenges but in order to protect this particular issue from having major effects on the global economy governments must put in place plans to increase jobs so that means labour market and regional development may be a necessity in many countries across the world.
Najma Abdi
References

1. United States department of labor. 2016. Labor Force Statistics from the Current Population Survey. [ONLINE] Available at: http://data.bls.gov/timeseries/LNS14000000. [Accessed 17 February 16].
2. Middle East and North Africa – Fact sheet. 2016. Middle East and North Africa – Fact sheet. [ONLINE] Available at: http://web.worldbank.org/archive/website01418/WEB/0__C-301.HTM. [Accessed 17 February 2016].

Advertisements

Our privilege their punishment.

child labourhttp://www.aworldatschool.org/news/entry/Today-is-world-day-against-child-labour

The occurrence of child labour is a disconcerting feature of an emerging market economy, the international community does not condone any form of child labour yet it’s occurring on a wide, scale, child labour is indeed one of the most urgent global economic issues in today’s world.majority of the time parents send their children to work in order to increase their probability of survival.however, they may not comprehend the long term affect child labour can cause their family.This can be magnified through the economic impact of child labour report which claims that ” children sent to work do not accumulate (or under-accumulate) human capital, missing the opportunity to enhance their productivity and future earnings capacity” (Galli, 2001 ,3 )

Child labour can be described as modern day slavery; millions of children are forced to go into work, locking them into this endless cycle of poverty, vulnerability and exploitation. Many children from poor backgrounds are forced to go into work at such a young age; as they are their parents only mean of income. The ILO estimates that” the number of working children in the 5 to 14 age group in the developing countries is 250 million, of whom at least 120 million are working full time “( CHILD LABOR and its Socio-Economic Impact | Parul Shah – Academia.edu. 2016) these figures are shocking, in a modern world where in some parts of the world children are awarded with all rights and privileges , in other parts of the world some children are living in shocking conditions with no system built to save them or their future.

There is no doubt that there is an extensive market demand thus child labour is not unintended for instance, companies and organizations in certain parts of the world have a preference to hire children because they provide cheap labour than their adult equivalents.in addition, it’s easier to get rid of them of them once profits fluctuates taking advantage of the children’s vulnerability. the International Labour Organisation defnes Child labor is as “work that deprives children of their childhood, their potential and their dignity, and that is harmful to physical and mental development.” (IPEC) . 2016. sadly all these listed are occurring to millions of children around the globe.

The Capitalistic System around the world lacks in education the majority on where we get our clothes from? And who is involved in the production process from the fields to the stores? We are talking about massive modern slavery of all range of ages that is accepted and allowed by the Capitalistic world because as long as we get our rewards in a form of cheap and fancy shirt, we would not questions concepts like child labour and its relationship to capitalism.

Most children work on farms that produce consumer products such as cocoa, coffee, cotton, rubber and other crops (Child Labor Facts and Statistics – The World Counts . 2016) we all like chocolate , guilty pleasure some may call it , “guilty pleasure” indeed companies have a moral responsibility to know where their products are coming from and who its being made by .is also important that we as consumers are aware of child labour , are we consuming products through the sweat and pain of children ?

Najma Abdi

1 LABOR and its Socio-Economic Impact | Parul Shah – Academia.edu. [ONLINE] Available at: http://www.academia.edu/7118550/CHILD_LABOR_and_its_Socio-Economic_Impact. [Accessed 16 February 2016].
2 Child Labor Facts and Statistics – The World Counts . [ONLINE] Available at: http://www.theworldcounts.com/stories/Child-Labor-Facts-and-Statistics. [Accessed 17 February 2016].
3 CHILD LABOR and its Socio-Economic Impact | Parul Shah – Academia.edu. 2016. CHILD
4 Galli, R. (2001). The economic impact of child labour. Geneva: International Institute for Labour Studies.

why is poverty still an issue ?

Despite all the advancement that we have seen in recent decades, despite all the plans to reduce global inequalities (Millennium development goals as main ones), despite the fact that the world’s richest 2% on course to gather even more wealth, it is really a shame that in 2016 we have to talk about poverty and inequality; more than 1.4 billion people live in poverty and this is a number that is well and truly expected to rise (global issues. 2013. Poverty Facts and Stats). So, if we are to discuss major issues facing the global economy then this is a topic that we cannot afford to ignore.

The level of inequality in today’s world can be seen in the latest report produced by Oxfam which claims that the richest people on this earth are expected to get even richer, this comes under no surprises as capitalism has and will keep being at its peak point. The extent of poverty and inequality in the richest capitalist economy such as the United States could be argued as further evidence that there is something wrong with today’s global economy as the wealth of this world is not being shared equally, this is not to say capitalism is good or bad but when one looks at how the world is shaped up they cannot help but be disgusted that is if they still have some human values about them.
In Africa, the number of poor people has doubled over recent decades which we have seen globalization rising but is that really a coincidence or could globalization be just a new form of colonialism? Despite rapid advancements in standards of living for a large proportion of the world population in recent decades, Africa remains behind when it comes to development, education and quality of life; many African countries are below the absolute poverty meaning that people actually live on less than £75p according to World Bank, meanwhile the rest of the world has had their shares of poverty improving in the last decades. Despite an increase in the economy of some countries in Africa and in the Global south in general the number of poor people has been increasing and this could be due to many reasons; unequal distribution within societies is an easy reason to relate however, the problems in many of those countries go back to post-colonial years. The impact of external debt has become so great that any government with debt will not be able act well as they have to repay; Damien Millet in his “who owes who.p.15” explains how by being in debt, international agencies like the IMF, World Bank have the ability to control governments.

Time and time we are seeing international organization such as the IMF and the World Bank coming out with solutions to reduce extreme poverty and global imbalance, but one could argue that they have not achieved much, for instance since the introduction of the Millennium development goals the number of poor people in the Global South has been increasing. Similarly, back in 2005 managing director of the IMF Rodrigo de Ratoy Figaredo has published a report explaining how they are going about in order to reduce global imbalances; when addressing this issue he says “Their resolution requires a collaborative international effort to address the underlying causes”,  (Institute for International Economics.) 2016but it could be argued that in order to discuss these issue the causes can only be understood by the people of the land so that means less involvement by foreign governments and the so called “international organizations”. ; Lastly, it is very important that the people in the Global south take charge of their future plans in each department including social, economic and political, they have a nearly perfect example of China when it comes to being in charge of your own matters.

Najma Abdi

1. global issues. 2013. Poverty Facts and Stats. [ONLINE] Available at: http://www.globalissues.org/article/26/poverty-facts-and-stats. [Accessed 04 December 15].
2. World Development Indicators 2007 (World Bank, April 2007)
3. The World Bank. 2015. While Poverty in Africa Has Declined, Number of Poor Has Increased. [ONLINE] Available at: http://www.worldbank.org/en/region/afr/publication/poverty-rising-africa-poverty-report. [Accessed 01 February 16].
4. Managing Director of the International Monetary Fund, at the Peterson Institute for International Economics. [ONLINE] Available at: https://www.imf.org/external/np/speeches/2007/040907.htm. [Accessed 17 February 2016].

 

How natural are natural disaster?

 

 

disasterhttp://www.constantinealexander.net/2015/06/linking-climate-change-to-natural-disasters-influences-charitable-aid.html

Natural disasters are increasing and occurring more than ever before. Some parts of the world are constantly affected with tsunami, earthquakes, flooding and other disasters. The term” natural disaster” denotes that it’s a natural event which no one is responsible for, however one could question just how correct that is .The effects of these disasters are monumental both humanitarian with millions losing their lives as well as an extensive economic damage which some countries are still recovering from years later . For these reasons it can be contended that the biggest economic global issue is in fact the environment.

Global environmental issues have been on a rise for decades, the earth is getting warmer and this is expected to have comprehensive as well as devastating consequences for planet Earth. For some years, global warming, the gradual heating of Earth’s surface, oceans and atmosphere, was a topic of heated debate in the scientific community. Today, the vast consensus of researchers is that global warming is real and is caused by human activity, thus highlighting the question just how natural are natural disasters? Climate change and its disastrous effects on the planet is “costing the world more than $1.2 trillion” (Environment | The Guardian. 2016) this shocking figure further magnifies just how much of an economical global issue the environment is in today’s world.

Reports and research suggests that climate-related vulnerabilities affect poor people’s lives directly through impacts on incomes for instance through reductions in crop yields or the destruction of their homes, the warming of the globe directly or indirectly has an effect on poor people’s lives that’s what this finding crystallizes, for example reduction in crop yields lead to an increased in food prices thus directly affecting food security of millions who are already marginalized. (Pachauri and Mayer, n.d.2016.54) in addition ,The Synthesis Report makes a clear case that many risks constitute particular challenges for the least developed countries and vulnerable communities, given their limited ability to cope this highlights the economic responsibility that lays on the international community as they would have to help these countries out when disasters strike . Individuals who are socially, economically, culturally, politically are especially vulnerable to climate change (UN and Climate Change. 2016)

Temperature change will leave the average income around the world 23% lower in 2100 than it would be without climate change, “We’re basically throwing away money by not addressing the issue,” said Marshall Burke, an assistant professor at Stanford University (How Global Warming Affects Economy. 2016 ) All my findings have proven that global warming is without a doubt catastrophic for the global market if not stopped or slowed down at least .climate change is not only causing live changing destruction , on a wide scale , but it is also creating even further inequality and suffering to the poor countries this should not be continue but should rather be combated , the same humans that are causing the turmoil of the earth must urn thus around and save it !

Najma Abdi

References
1. Climate change is already damaging global economy, report finds | Environment | The Guardian. [ONLINE] Available at: http://www.theguardian.com/environment/2012/sep/26/climate-change-damaging-global-economy. [Accessed 17 February 2016].
2. Pachauri, R. and Mayer, L. (n.d.). Climate change 2014.54
3. Climate change threatens irreversible and dangerous impacts, but options exist to limit its effects – UN and Climate Change. [ONLINE] Available at: http://www.un.org/climatechange/blog/2014/11/climate-change-threatens-irreversible-dangerous-impacts-options-exist-limit-effects/. [Accessed 17 February 2016].
4. Climate change growth: How Global Warming Affects Economy. 2016. Climate change growth: How Global Warming Affects Economy. [ONLINE] Available at: http://time.com/4082328/climate-change-economic-impact/. [Accessed 17 February 2016].