THOUGHTS FOR A SUSTAINABLE WORLD

The Philippine Star
04/01/09

Even before the first returning overseas workers passed through our immigration gates, thousands of Filipino workers in semi-conductor manufacturing plants, largely based in export processing zones, were already experiencing the reality of a global recession when they were told to work on shortened weeks.

We now know too well that when the “haves” of the world curb their appetites for new flashy mobile phones or the latest entertainment systems, the “have nots” find themselves with reduced take-home pays, or in worst cases, totally out of jobs.

We as a nation may be a tad smug about reports that, compared to many countries including the biggest in the world, we may be spared – or at least experience little – of the painful whiplash of the current financial holocaust.

But while waiting for the industrialized world to sort out their economic mess, all we can do is to fervently pray at the sidelines hoping that things return to normal soonest. Our countrymen now realize that every day delayed means a step deeper into poverty.

As 20 of the world’s biggest economies concluded their meeting in London Thursday, the big question remains whether this diverse mixture of political and economic ideologies will be able to arrive at a consensus that could plug the whirlpool that is dragging the whole world down the drain.

Re-regulation

France and Germany have been very vocal about what they feel are short-sighted measures to bring resolution to the global problem, and more importantly, the lack of political will to reform (or re-regulate) the current financial order.

The two countries are pushing for more substantive agreements that would re-shape key secondary financial markets that are seen to have been instrumental in the colossal collapse of the U.S. credit markets, and eventually undermining Europe’s and even Japan’s.

On the block are hedge funds, credit rating companies, offshore banking centers, and yes, even salary caps for bank executives. Key words are: more transparency, closer coordination, tighter control and scrutiny, all summed up to create a new integrated world financial order.

Effectively, France and Germany are saying that enough time and effort had been expended by governments in setting up stimulus funds as a way of stemming the collapse of the global economy. And therefore, providing for a bigger stimulus package under the stewardship of the International Monetary Fund, for example, is taking the activity a little too far.

Germany’s Chancellor Angela Merkel is uncompromising in her position that developed economies must at the soonest time look at returning to sustainable fiscal policies based on discipline, dismantling of protectionism and mopping up of excess liquidity.

Angered poor

On the other hand, many international economic institutions, the World Bank and the Asian Development Bank included, are warning that developed countries face the ire of vast number of poor people in developing countries who feel victimized by a financial crisis not of their own doing.

As the world’s poor are getting pushed into desperation, millions of lives including children are on the line. Consensus is building up that developing countries will need $1 trillion to protect themselves from the storm unleashed by the developed world’s regulatory failures.

In the midst of the gloom and doom scenario that is affecting lives of the world’s poorest, the threat of unrest and even war are ever so real. Reports of uprisings are closely being watched.

And just like many of the big economies, governments of emerging economies feel more exposed to higher debts that are compounded by their own versions of stimulus funds, lower export revenues, and in many cases, reduced inflows of overseas income from migrant workers.

Coincidentally, not only the world’s poor can claim to have an axe to grind. Industrialized countries’ labor forces, also feeling the debilitating effects of the world recession, are angrily marching in protest for what they feel are excesses by their very own banking system.

Not just economy but the environment too

On the fray of all the discussion about the world’s economic problems are the nagging assertions of environmentalists for prioritization of the issue regarding global warming.

Climate change is happening and the threat of irreversible damage is all too real, if it is not yet upon us. To effect any meaningful change, environment activists see the need for massive financial capital to retool existing technologies and bring down dangerously high emission levels.

With several precious trillion dollars being earmarked to resuscitate economies and protect the poor, environmentalists have clearly a case to be anxious. When debating on which concerns should be given priorities, disagreements will inadvertently rise.

Sobering thoughts

As citizens of a global world, the Great Recession as well as the changing climate we are experiencing compromise our existing quality of life. We ask ourselves, where did we go wrong?

In the cacophony of voices that have been stirred in mankind’s biggest debate, I share the view that where we are now is a result of excesses – of living beyond our means, of wanting more than we can chew, of a society that favors disposables over re-usables.

The word progress is turning out to be a word that spells self-destruction – a world of opulence that has caved in, baring misery and hunger for many, of industries that have created comforts, and also threats to the sustainability of our planet.

What should be do? Many of us know that there are little things we can do. But it is hard to admit and commit. It is difficult to budge from this air-conditioned office when the sweltering heat of summer bakes the streets. It is discomforting to think of walking five blocks away when there is a car ready at our disposal.

And so, many of us wait in the sidelines – and just hope that others will solve the problems of the environment and the economy.

Should you wish to share any insights, write me at Link Edge, 25th Floor, 139 Corporate Center, Valero Street, SalcedoVillage, 1227 MakatiCity. Or e-mail me at reydgamboa@yahoo.com. For a compilation of previous articles, visit www.BizlinksPhilippines.net.