фабрика море зовет минус

The leaders of world capitalism are consoling themselves that they survived a вЂ

The economic crisis is also a serious political blow to capitalism, especially to the prestige of the advanced capitalist countries. “The financial and economic crash of 2008, the worst in over 75 years, is a major geopolitical setback for the United States and Europe”. (Roger Altman, The Great Crash 2008, Foreign Affairs, Jan/Feb 2009)

World trade, the engine of globalisation, collapsed with a 16% fall expected for 2009. The cumulative output losses since the beginning of 2008 have been severe: minus 5.14% for OECD-Europe, minus 8.4% for Japan, minus 3.55% for the US, with an OECD average of minus 4.7%. In Britain, the cumulative loss has been minus 5.54%, and the recession may continue longer than in most of the other advanced capitalist countries. Ireland and Iceland have suffered cumulative losses of about minus 9% of output, while Turkey has fallen by minus 13.92%. (Source: Office for National Statistics, Economic and Labour Market Review, October 2009) There have been even deeper falls in some of the central and east European countries: 18.4% in Lithuania, 16% in Latvia, 14% in Ukraine, and 13.2% in Estonia.

WORLD CAPITALISM HAS been shaken to its foundations by the economic crisis that has unfolded since the end of 2007. Nobody disputes that it is the worst crisis since the 1930s. “The downturn has been global in scope”, comments the Organisation for Co-operation and Economic Development (OECD), a grouping of 30 advanced capitalist countries, “even though its financial epicentre was in the OECD area. Indeed, trade and financial linkages prompted a synchronised collapse in activity and trade after financial markets froze in the second half of 2008″. (OECD press release, 24 June 2009)

Is the worst post-war economic downturn coming to an end? Are the green shoots of recovery really visible, as many politician would have us believe? Opinion is divided, with some commentators counting down to the next crisis. What is clear, is that this is a time of acute economic instability. Any growth is likely to be slow, with governments and big business out to offload the costs onto working-class people. LYNN WALSH reports.

Where is the world economy going?

Lynn Walsh reports on the world economy in 2010 – is the ‘Great Recession’ finally over? Has capitalism ‘dodged a bullet’ or are we entering into a period of prolonged stagnation, weak recovery and structural crisis? From Socialism Today #134,

Struggle – Solidarity – Socialism

Cedar Rapids Socialist Alternative