Marathon, once popular in the arena of sports is now trying to peep into the world of economy.Recent economic crisis have demanded each country to prepare well to win the race.
The plummeting stock market, frozen credit markets and rising unemployment have left a dull view of once bright US economy. Not only this, foreclosures have locked the last hope. The consumer spending is also weakening day by day in USA.
Economy of a nation can only survive under a country’s huge capacity for growth and innovation. The US status as world’s economic superpower seems easy to be swallowed by other powers with colossal economic conditions.
Organization for Economic Co-operation and Development (OECD) has forecasted that GDP of United States may contract by 0.9 per cent in 2009 after growing 1.4 per cent in current year. On the other hand, the economy of Japan will also shrink by 0.1 per cent, the euro zone by 0.6 per cent and UK 1.1 per cent. Not only will this, Spain, Ireland, Iceland, Hungary and Turkey will also experience the severe downturn.
Such economic crisis remained the part of history. To cater such issues a platform was deem essential. So, in 1989 former Australian Prime Minister Bob Hawke called for better economic cooperation across the Pacific Rim region which led to the first meeting in Australian capital Canberra and was chaired by former Australian foreign affairs minister Gareth Evans. This Asia-Pacific Economic Cooperation (APEC) is a forum for 21 Pacific Rim countries to discuss regional economy, cooperation, trade and investment.
The recent economic meeting was held from 22-23 Nov 2008 in Peru which became the united front against current economic crisis. APEC leaders called for a new start to global free trade negotiations. US President Mr. Bush urged APEC countries to rely on free trade to resolve the economic upheavals.
Rest of APEC leaders also pledged to end up all the trade barriers which is the only way to restore economy. The members are worried about economic situation which appears to be nastiest in near future. That’s why South Korean President Lee Myung-bak says that companies will go bankrupt and countless jobs will be lost and poor nations and poor people will suffer the most damage.
Free markets and free trade is ray of hope for them. Of course, by this way one can find the solution of unemployment and enhance the industrial infrastructure. For this reason Mr. Bush called for Asia-Pacific region of free market, free trade and free people. Rising trade barriers can ruin the economy. They want to make a free trade zone of 21 Pacific Rim countries which have an established economic status. It may lead to a positive outcome but according OECD, ‘the US, Japanese, UK and euro zone economies will all shrink next year as the global financial crisis takes its toll on the broader economy’.
Mr. Bush attended last APEC meeting as US President in Peru. He encouraged the efforts for free trade and is expecting the same from new US president. He is emphasizing on the free trade zone and according to him about 11 free trade agreements were signed in his eight years of presidency. On the other hand Economic crisis affected badly at the condition of common American. So, it became essential to provide jobs to halt the increasing unemployment. In connection to this issue new US president Barak Obama is aiming to create 2.5 million new jobs in two years plans which may cost as much as US $ 700 billion it is a colossal challenge for Mr. Obama.
American also wants stable economy because they elected Obama in the withering financial situations. Mr. Obama ought to be ready to prove his intellectual capabilities. And Mr. Bush’s following saying may help him to overcome recent crisis that:-
‘With confidence in our ideals we can turn the challenge we face today, to an opportunity and lead the way toward a new era of prosperity for Asia-Pacific and beyond’.
The economic runners long to brush off all the barriers and want to pace up the free trade zone to let the economy sprint better.
