Will the global recession cause a new world order?
The world has witnessed the era of the British being rulers of the world and then came the period of the American rule across the globe. After the disintegration of the Soviet Union, America was lucky to rule solely but who knew the “Super Power” will be assailed by recession in October 2008 and it shook the economies all over world as the nucleus of the capitalistic world economy was hit due to excessive bad debts domestically and soaring expenses of the multibillion dollar wars in Iraq and Afghanistan. The ripples of the American economy deterioration were so colossal that all the major economies of the world came under pressure as well, almost all the more developed countries were harmed somehow or the other as these countries rely on the American markets either consumer or capital. The grim situation of the U.S economy gave birth to the belief that is it the time for the world to see a new economic giant. In the last one and a half decade world has seen the nation of Mao to prosper and achieve new milestones, giving serious threats to the unchallenged U.S supremacy. The Chinese strength of low cost production is and has been a serious weakness of the U.S economy thereby compelling the critics to call China the “factory of the world”. The American trade deficit has been tamed by depreciating the Dollar whereas China is persistently enjoying trade surpluses resulting in the record foreign reserves of more than 2 trillion$. The Asian Development Bank even gave the indication of Chinese Yuan to replace Dollar as universal currency. It is almost 22 years less than even quarter of a century when in 1988 power of the USSR was brought down to its feet but to one’s surprise Russia recovered well and fast especially after the joining of Presidential camp by Mr. Putin. Russia has the full potential and would rightly be one of the important stakeholders of the new world order; already both China and Russia have...
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