Don961: Economic crises in history … useful experiences
Thursday 04 June 2020 Adnan Abu Zaid
There is no despair with the economic crisis, if the Iraqis are certain that people have emerged from the most severe adversity to new achievements in which they have strengthened their presence and strength, after they were on the verge of an existential danger, while the financial crisis, economic elites will be forced to devise solutions, and enhance the seriousness of government institutions and ministries in Rationalization of spending, and increase the citizen’s insight into understanding the problem, then national. It needs everyone’s solidarity.
A look at the history of crises reveals the ability of peoples to adapt themselves to conditions of distress, to invent the necessary solutions, rather than to give in to disappointment, and to provide opportunities for collapse.
There is a crisis that is magnified in the news and social media, and those who have solutions need to devise the key to address the adversities that must be managed well, which is called the art of crisis management that addresses the potential threats and find the best ways to avoid them.
Often the crisis is a sudden event, or an unforeseen consequence of stereotypical events, and in both cases, it requires rapid and firm decisions, based on monitoring systems enhanced by early warning signals, that are relied upon to reinforce the facts, rather than rumors that fuse media frenzy caused by reports that are not Accurate.
In 1871, America experienced a severe economic crisis, during which millions of its people were displaced by unemployment and hunger, and thousands were forced to emigrate abroad.
The Great Depression years of 1929, which is one of the largest and most serious economic crises the world has witnessed in the modern era, and has lasted for more than 10 years, have caused devastating effects on rich and poor countries alike, and have become a crucial reference for economists.
In 1973, the Netherlands, Belgium, and Norway were forced to use “animals” as a means of transportation after the Arab oil embargo, for their support of Israel.
The Great Depression of Germany in 1933 caused the Nazis to rise to power.
In 1997, the Asian financial markets crisis erupted and spread to South Korea, Japan, Indonesia, Thailand, Malaysia, the Philippines, Laos, Hong Kong, China, Taiwan, Singapore, Brunei, and Vietnam. Russia stood on the brink of a deep economic abyss in 1998, in which the government was unable to pay the accumulated foreign debt, inflated external debts, and oil and raw materials collapsed, while the debts due to Russian workers amounted to nearly 12.5 billion dollars.
The emergence of the Corona virus led to a serious economic crisis that reached its maximum ranges in the “Black Monday” after the collapse of the world’s stock markets to their lowest levels since the end of 2008.
Before that, early in history, the credit crunch ravaged Britain in 1772, and spread throughout Europe, despite the fact that London managed to create tremendous wealth through its colonial property and trade.
The successive financial collapses throughout history generated new thinking and reform, and it appeared clear that the 2008 banking debacle in the United States was closely related to political conflicts, and Washington interfered in many conflicts in the world, according to criticisms directed at American policy.
Iraq, which has not entered a period of stifling economic crisis, has the opportunity to benefit from the experiences of previous global crises, through the state’s interference in market activity, finding a balance between supply and demand in the market, and achieving social justice in a new salary scale, ensuring economic security for every individual in society , Rationalizing government spending, enlightening the individual in beneficial consumption, developing local industry, and reducing imports.
One of the corridors of crossing economic crises is to follow the European and American experience in easing the impact of the crisis on the poor classes, in caring for the unemployed, embarking on industrial and agricultural reform, and subjecting the important productive sectors to strategic planning for expansion and development, and the transformation from a rentier state to a productive one, in which the productive individual It is the capital, not the barrel of oil. LINK