WTO on the global economy: Recovery is far from over - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  
  • Home
  • Outlook Arena
  • Jul 14, 2009 - WTO on the global economy: Recovery is far from over

WTO on the global economy: Recovery is far from over

Jul 14, 2009

WTO's take on the global economy
Various individual experts and organizations have been giving their take on the global economy and how deep the recession is. Many are of the opinion that the global economy is far from a significant recovery and the latest to join this bandwagon is the World Trade Organisation (WTO). The WTO believes that while a recovery yet is still far off, not many countries have done away with their respective protectionist barriers. Falling corporate profits and rising unemployment have led to some countries imposing trade barriers to protect their countries, little realising that this could have an impact on global trade going forward.In fact, this brings to fore the adage, "What goes around comes around," which is all the more relevant in today's world where globalization has significantly enhanced. Thus, increasing protectionism would only serve as a short term measure and may not be healthy in the long term interests of a nation, something which a developed nation like the US also realized. As reported in a leading business daily, the director general of the WTO Pascal Lamy has remarked that import penalties and other border restrictions are closing off markets and causing more difficulty in a time of depressed demand.

On the global economy, this is what Lamy has to say, "I would caution against excessive optimism. Although financial markets are showing signs of stabilizing, the crisis is far from over, in particular in many developing countries that are only now starting to feel its full force on their trade and economic growth." We couldn't agree with him more!

India's rising status in the global arena
India is making considerable strides in leaving its mark on international policymaking. The recent G8 summit (or should we say G14) in Italy is a case in point where the country made its stand clear on global trade and climate change. While on the climate change issue India refused to give in to the demand of the West with respect to meeting carbon emission targets, as far as global trade is concerned, the country along with the rich nations agreed to conclude the Doha round by 2010 in a bid to end disputes with respect to tariffs and subsidies.

And what has led to the resurgence of India in international policymaking? Ironically, it is the global recession. The country may have logged in a stupendous growth of 9% plus in the two years prior to FY09, but it is during the recession last year that India's strength came to the fore. After all, even though the country's growth slowed down to 6.5%, it was still far superior to the developed world which has been mired in a recession. What is more, the US President Obama is also of the opinion that the big emerging countries should have a greater say in international policymaking. Thus, while India does have its share of serious problems especially on the infrastructural front, it certainly needs to be lauded in making itself heard in the global forum.


Equitymaster requests your view! Post a comment on "WTO on the global economy: Recovery is far from over". Click here!

  

More Views on News

The Gold and Silver Bull Market is Not Over (Fast Profits Daily)

Sep 29, 2020

The last few days have been nerve-racking for bullion traders. Stay calm. The bull market still has a long way to go.

Earned Short Term Capital Gains on Shares? Here's What You Need to Know While Filing ITR (Outside View)

Sep 29, 2020

PersonalFN explains CBDT's clarification regarding scrip wise disclosure in ITR in case of short term capital gain.

This Smallcap is a Must Have Stock in Your Portfolio (Profit Hunter)

Sep 29, 2020

Investing in this smallcap could open doors of huge, long-lasting wealth.

Why the Market May Rally for a Few Days (Fast Profits Daily)

Sep 28, 2020

Why I think the market can rise for the next few days.

My Top Pick for 2021 is Not a Stock. It is Something Much More Powerful (Profit Hunter)

Sep 28, 2020

My top pick for 2021 is something that has helped me and my subscribers beat the stock market by a factor of 2:1.

More Views on News

Most Popular

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

My Top Stock to Buy in this Market Selloff (Profit Hunter)

Sep 22, 2020

The recent correction offers a great opportunity to buy this high conviction smallcap stock.

Can the Nifty Fall to 10,200? (Fast Profits Daily)

Sep 24, 2020

The Nifty has reached an important support level today. If it breaks then we could see further downside.

What Do the Charts Say About Buying Smallcaps Now? (Fast Profits Daily)

Sep 18, 2020

Everyone seems to be excited about buying smallcaps now...but is it the right thing to do? What do the charts tell us? Find out in this video...

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Sep 29, 2020 (Close)

MARKET STATS