Effects of 2008 Global Recession to the Third World Countries (2012)

Only available on StudyMode
  • Download(s) : 138
  • Published : March 15, 2012
Open Document
Text Preview
|
|
|
|
|
The Effects Of The 2008 Global Recession To Third World Countries Lorem ipsum dolor sit amet, consectetur adipiscing elit.
|
Amapola Bulusan, Franchette Torres, Maxine Lee2BLM, (2nd Semester, 2012) Ma. Jesusa Avila Bato
March 6, 2012|

Chapter 1:
Background:
For the longest time the United States of America is considered as the capital city of the world. They stayed on top in terms in terms of politics, business infrastructures, technology and economics. Almost everyone outside America especially those who live in third world countries like Philippines, Afghanistan, and Mexico have this so-called American Dream. A very good example of American dreamers is us, Filipinos. Since we have been under the US government for quite some time after the Spanish regime and after the World War II, we have developed this colonial mentality. We have this dream of going to the United States believing that if work and live there we would be able to uplift our living conditions. But all of a sudden the Lehman brothers who started the American crisis that later on marked the beginning of the 2008 Global Crisis crashed this dream of ours.

In 2008, the United States of America a major financial crisis which led to the most serious recession since the Second World War. This all started when the Lehman Brothers, one of the largest investing bank in the world, failed (The financial crisis of 2008: Year in Review by Joel Havemann, Encyclopedia Britannica eb.com). On September 15, 2008 to be exact the fall of the Lehman Brothers resulted to the downfall of the United States stock market and the laying off of employees by many successful companies. Now the question left is how does the failure of this major financial company affects the US stock market and even marked the beginning of the 2008 Global Crisis? In a critical sense, financial business is more important that other industries because finance is necessary for every business to operate successfully. Lack of access to credit would cause even profitable businesses to close down. Thus without a successful financial bailout, all industries would have suffered catastrophically. And like a domino effect when the Lehman Brothers failed, many successful companies suffered and lay off their employees. Unfortunately many of these employees are not Americans and in fact these are the people whom we considered as the American dreamers. And when these become jobless they were given no choice but to go back to their own respective countries. In our country these people are our Overseas Filipino workers whom we considered as our “Bagong –Bayani”. We call the “Bagong-Bayani’ because they are the biggest contributors of our dollar reserves. This has a good effect in our economy because the higher our dollar reserves are, the higher the value of our money. Therefore the higher the number of our Overseas Filipino Workers, the better we economy we have.

On the other side of the story, the geopolitical factor of the United States of America also affects the economy of the country like any other country which economy and government are inseparable. Unfortunately in this case it worsens the situation or as they say it, it throws more fuel to the fire. By geopolitical factor we mean the US- Iraq war during the Bush administration. The neocon plan of the former president George bush to bomb the Iraq as revenge for the 9/11 bombing in Ney York city worsen the economic situation of the country. And again, the Unites States of America did not solely shoulder the burden. We, major oil importers, have also our own shares of burden and adjustments to make. Since Iran, Iraq and other middle-east countries are the major oil producers, the bombing of Iraq, which also affects some parts of the Middle East, paralyzed the production of oil and its distribution to the world. Indeed during those years, the world had to adjust to a peak in oil production and to higher energy prices, after...
tracking img