Monday, 17 November 2008

Crisis or a Revolution?

Crisis or not, times are turbulent, for sure.

The turbulence –one would agree - is not just economic; it is more of socio-economic nature. Insolvencies, recession, cash crunch, interest rates... everything is contributing to the mess to the fullest extent possible. So much so that most of analysts are tempted to go back to 1930s to establish the comparable... well, do we really need to go that much back? (I do not think anyone who would read this blog would have had witnessed the 30s) Does anyone find any such example in recent history?

Perhaps, I do!

Just two odd decades ago, there was similar situation. Well, it was not of this magnitude; still it was of same importance (the world economy at that time was, definitely not as much interlinked then as it is now). It was... crash Communist economies.
Germany reunion, fall of USSR, China’s turnabout on economic policies, crisis of Cuba...

Was the rise and strengthening of capitalism as a socio-economic system at almost the same time a sheer coincidence? Or was it a corollary of fall of Communism? Or was it an inevitable alternative?

The voice of leftists is rising from hush-hush to growl saying, it is not a fall of one or more economies but of capitalism itself (Impliedly they mean the re-rise of communism - or at least, socialism - as a stronger system).

No, I am no left sympathizer in any way. Still, the point made by them can just not be dismissed since, as yet, there has not come up a single strong model which can analyze the past, explain the present and guide the future with confidence.
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This is not an analysis. This is not an opinion. Perhaps just a mention of social vibrations I felt. Afterall, there is always a possibility of a “Third Alternative”!!

I invite your opinions, analyses, views and arguments on this.

1 comment:

Pawankumar Nathani said...

Was the situation really similar or the crisis similar (though on the behavioral economic level)

The events at that time did not reflect the global scale of mayhem, which we are facing today.

Even after the collapse of one superpower (USSR), there did exist another power (USA), which could atleast in theory hold all chaos..

What about today? Is there any country of that magnitude or any country which can face the crisis of that magnitude...

The events like downfall of berlin wall was in fact a positive sign of times to come... Do we see any silver lining like that?

Or we are witnessing a civilised Economical Civil war being raged within the economies where no system of the extreme holds true....!!!???