The world is under severe economic crises which are leading the masses towards hunger, poverty and unemployment. Experts have warned that the world might be edging toward a global recession in year 2023. This is matter if concern for all economies around the world.
Year 2020 was rough for economies due to imposed lockdowns to curb COVID-19. Year 2021 follows smart lockdowns. Economic growth, development and thing were expected to normalize in 2022 but post COVID-19 events such as: Ukraine invasion by Russia and smart lockdowns in China till date not only decelerates the growth but also lead the world towards crisis. However, climate change causing flood and melting glaciers, increase in population affecting demand and supply chain and many countries prioritizing their ideology, culture and politics over economy also contributed to the crisis.
An economic downturn affects the economies, companies, and individuals too in many ways: through higher unemployment causing hunger, poverty and uncertainty over future jobs and income. Declines in trade and commodity prices, export sector slows which delays the development of underdeveloped countries. These factors causing gap between demand and supply, eventually there is rise in inflation.
Remedies can be taken in numerous ways to curb crises. Foremost comes the role of WTO to ensure smooth trade and UN to maintain peace around the globe. Internationally institutes should be made to maintain equilibrium and also make individuals and economies conscious of that. Governments should promote and encourage new startups and entrepreneurs by reducing taxes and making friendly environment for them.
Modernization of agriculture and irrigation also contributes to the economy. Rich fertile lands, proper care of crop, using hybrid seeds can double the production. Steps should be taken to restore the barren land and control water lodging and scarcity.
Climate change also contributes to the economic crisis, so, measure have to be taken to control it. Mostly energy is generated by fossil fuels. Fossil fuels are limited, high priced and eco-unfriendly. To rein the climate change and economic crisis alternative methods for generating energy should be installed i.e., biogas, solar energy, wind energy, tidal energy, hydro-electric energy. Likewise; petrol engine vehicles also be replaced by electric vehicles
Current global economic crisis can cause recession and many economies may collapse. For the most part underdeveloped countries have to suffer more. These crises have impact on every individual in many ways, so everyone have to contribute in their own way to control crisis.
Written by: Mutahar Khadim
Image by Gerd Altmann from Pixabay
