Historical events like the Great Depression, World Wars, and pandemics have had a marked impact on individual’s life course and the current financial crisis that caught the whole world into its grip seems to have similar impacts on lives of people. The crisis that resulted from the financial crisis in the US has hit people from every part of the world and walk of life. Current world wide economic downturn has changed not only changed the way of life people had been leading but also the way they think. It has not only brought millions of people on their toe but also many nations as well. The economic downturn has made nearly every country poorer than pre-crisis era but the developed countries have been hit hardest by the crisis.
If it is said that this economic downturn has catastrophic impact on the whole world then it would not be wrong. Millions of people lost their jobs, thousands of firms and companies were locked and hundreds of banked became bankrupt across the world. Economic power house like US has become a weaker player in the world market and many new players like China have started dominating the Geo-political and economic scene affecting decade old balance of power. It had not only been limited to this but the US that was said to be mightiest economy in the world had to take help of China to bail out its economy from the recessionary trend.
Economies like China, India, South Africa, Brazil and many other are becoming more important for the world and the third world is gaining importance in world business. Last year India denied ratifying the WTO’s Trade Facilitation Agreement even though it had agreed to. Russia and China opposed and succeeded in any Security Council taking any tough actions against Syria and Assad Government. Also the voting power at the IMF had to be changed in favour of developing countries (though not very significant but change has started). This shows how world has changed post crisis. Also at the same time there has been huge change in the employment trend. Earlier people from the eastern countries like India and China were going to western countries for the employment opportunities but now a large numbers of professionals are going these developing eastern nations for a better employment and career opportunities.
Also the trade and capital flow was mainly dominated by the western economies during pre-crisis era. But after the economic recession in the world economy, it is expected that the world trade would be tilted towards the developing and least developed countries because the demand for the goods and services would increase at far higher rate in these countries than the western countries. This will provide more bargain power to these countries.
Also there is has been change in the attitude of the people across the world. These eastern countries were not seen in very good picture by many of western nationals but people in west are realising that other part world is becoming important and they are required to maintain a relationship with them that should be healthy and balanced. Also this crisis has shaken the foundation of capitalism. Now people are asking difficult questions about the globalization, financial integration and monetary unions like European Union. So it is clear that we are going to live in different world than that of the pre-crisis era.