Interconnectivity calls for more responsible national roles
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Xinhua, January 30, 2012
The world is growing increasingly interconnected and major problems in any single country or region can have huge repercussions across the globe.
This was a consensus among participants at the annual World Economic Forum, which featured discussions on the European debt crisis, efforts to sharpen leadership and new growth patterns.
The challenges are multi-faceted and the debt crisis in the eurozone might be the biggest influence on the world this year.
Over-spending and loose fiscal rules are the reasons behind the crisis that has cursed Greece, Ireland and Portugal and threatened to bring down far bigger economies such as Italy and Spain.
The problem is not confined to Europe. U.S. Treasury Secretary Timothy Geithner mentioned two possible major barriers to U.S. economic growth: the situation in the Persian Gulf region and how the Europeans fix their problems.
If there was "a little" progress in Europe, 2-3 percent growth in the United States was "realistic," he said.
The chill is also being felt by the emerging economies, with the global malaise hampering exports while engendering protectionism. Participants from some developing countries stressed the need to tighten the reins on the fiscal front and to take early and decisive action against the debt issue.
Both Hong Kong chief Donald Tsang and Mexican President Felipe Calderon cited their experiences in dealing with major regional financial crises, arguing that indecision would lead to dearer costs, and that is unfortunately the case with Europe.
What is encouraging is that the United States and European countries have recognized the possible devastating outcome of some aspects of their development mode and started the process of deleveraging what had in the past decades brought them huge wealth.
They have started on the right path. Sober minds across the world are expecting them to continue this journey in making the world a fairer and more prosperous place.
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