Global Economic Issues - Poverty, Health Crisis, Increased Debts by Different Government - Essay Example

Real World Economic issues Name: Institution: Introduction Economics helps in understanding the behaviors of human which are influenced and imposed by scarcity. It helps to in analysis wealth, how it can be created, consumed or even increase in individual basis or as a country. Economics is also used in analysis of other situations affecting people like wars, conflicts, poverty or even education.. This is because any situation that is affecting people has some of its goals either negative or positive and has an impact towards the economy. This makes history, political science and economics not seperateable components with the economy being controlled by the politics of that particular area. Due to political misconceptions with different influence in world trading and economy .There are various economic issues that have become global resulting to unfortunate to poverty, health crisis, increased debts by different government and many other s. These issues are resulting to slow or negative growth in some part of world economies. There are other global issues that are as result of increase tensions and distrust around the world as result of new political and economical power which are rising. Global Economic Issues One the global issue is energy insecurity which can result to change in the physical availability or price of the energy. Energy security can also be defined in terms of externalities which may be related to changes in price volatility and volumes of oil import .Externalities relating from imported oil usually is as a result of the exporters power of their market because of different organization. Energy demand is also high any any rise of the energy costs is likely that it will trigger the capital market due to increase obsolescence in the capital productivity. Externities can also haven impacts which are either negative or positive with negative impacts being as a result of the pollution emerging from the different types of energy .Energy insecurity can also be caused or be triggered from the side of demand like when any importing country promotes incentives that will reduce amount of energy import which may certainly affect the energy producer (Labandeira, 2012). There have been policies that put in place to combat energy insecurity; some of the policies are based on the supply side while others are based on the demand side. Some of the policies are like big share of renewable, diverse purchasing portfolio and many others which help to in efficiency use and conservation of energy (Stec &Baraj. 2009. pp. 36-40). Global imbalance is one the economic issue that has affected the world currently. It can be defined in different perspectives mostly in international relationships as pertaining to current account, official reserves transactions or even private financial account but mostly it is equated to current account imbalances. It has been on of the global issue that was mostly experienced on 2007,.it was evidence d by high rate rise in real estate value in many countries including the United State, also good number of countries were rapidly running high current account deficit which also was experienced in the United State which was the world’s largest economy .Another cause of financial crisis in 2007 was caused by leverage building up to extra ordinary levels in different sectors across the global including the United State and Britain (Dunaway.2009.pp.4-20).Some of the feature that in financial system in international level that enabled imbalances to exist are like reserve asset issuance, floating and exchange rate management. Thus if the labor market wants to keep the external demand in check the official reserve levels will be higher than needed contributing to better hedging instruments while on the other side there is diversification way from US asset with low yield . There has been an improvement since credit crunch in global imbalances but still there is global in between the West and East (Dunaway, n.d). Health crises is another global concern issue in that despite some improvements in world’s ability to deal with disease with some advances in medicine and technology, the global health is still unmet thus making the world vulnerable to health crises. New disease are emerging with and spreading very fast through pathogens and insects that are resistant to chemicals thus posing challenges to human health.. Also Diseases are contributing to high level of poverty mostly in developing countries as result of extra cost used in health sector instead of investing the money in other profitable fields (Merson, 2012). Diseases can also be traced back from the conditions in a particular environment or social conditions mostly in the poor nations, due to that it is important to introduction environmental sanitations techniques with better understanding of the infectious disease epidemiology and thus help fight for human health. Also with most of infectious diseases occurring in poor countries and around the tropical area, food –borne illness are also common and affects quit large number of people in both poorer and richer nations (Mersion et al .2012.p.777) The extraordinairy growth with active diplomacy in China is already transforming the East Asian countries with increased influence across the world which is becoming another major concern mostly to world power.. Due to the increasing influence of china, most observers are urging that the American era is ending slowly replacement of the dominated western orders by the dominating east. This is because as the China is gaining more power, the United State position is eroding and this may result in that , China may try and use its increasing influence to reastablish the orders , rules and international system based institutions in order to serve its interest (Xing.2013.p.2005. If the United State want to maintain its leadership, It must try and strengthen institutions and rules likely to undermine the order and thus becoming more easier for china to work with but hard incase they try an overturn. It also have to sink deep the roots of its order thus ensuring China gets bigger incentive and thus instead of opposition it will be integration and this will increase chances of their system surviving although their current power is likely to declines (Ikenberry.n.d)... Another global concern is conflicts and poverty .Poverty can be focused at individual level and can also be examined at micro –level effects such as terrorism, war or any other form of instability such as revolution.. On the other side, wars and conflicts can be examined whether they cause poverty either directly via actions such as destruction on economic infrastructure or in other indirect means (Ikejiaku, 2012). Other conflicts can be as a result of threats such as borders and boundaries blurring thus resulting into immediate problems with either short term effects or long term effects. A war leads to damaging of infrastructures’ loss of lives. This affects the economy of war prone areas and thus instead of using resources and money to improve the economy, they are used to re-establish damaged infrastructures. In other cases nations may intercept on others nations wealth and trading policy designed and this usually results that countries which are less powerful are overwhelmed by more power in wealth interception through convert or trade wars thus resulting in the weaker countries losing in such case . Athough generall in war loss is incurred, some parties may benefits from increased demand of the products the supply, for instance demand of weapons is high during the war period and also in postwar demand of of products to replace the already destroyed infrastructure may also be high In order to reduce levels of poverty, drastic measure has to be taken to avoid crisis erupting since it the major cause of poverty and also Organizations for Economic Co-operation and Development (OECD) should be extensively active to help and combat poverty (Spoor.2006.p. 266). Conclusion The world needs solution to the economic issues and problems that are existing because all the crises seem to be interdependent such that no dealing with on crises without all of them being dealt with. This can be only possible by government that are non-military driven but common federation which is constitutional driven. There is also need of trying to address the issues at different levels which can be global, individual or national. At individual levels people should concentrate on things that will try to eliminating the existing problems and become responsible for the state of their nation thus solving the problem of socio-economic. The world business, civil societies and governments should work together and try to improve the world state by helping the poor countries in order to try and boost the whole world economy. Also countries should try as much as possible to prevent eruption of conflict and completely fight with case of terrorism and develop policies that will ensure that environmental and energy security is ensured. These policies should focus on both effects that are of short run and long run and consider the way people in different groups will be affected by the policies. References Labandeira, X. (2012). Some Economic Aspects of Energy Security .Retrieved from www.eforenergy.org/docpublicaciones/documentos-de.../WP092012.pdf‎ Stec, S & Baraj, B. (2012) Energy and environmental challenges to security Dordrecht: Springer Merson, M., ‎Robert E. Black, .R.E & ‎Mills, A. (2012) - Global Health. HEALTH - LONDON- Sage Publications. Merson, M.H. (2012). Diseases, Programs, Systems, and Policies.  Retrivied from samples.jbpub.com/9780763785598/85598_FMxx_final.pdf Spoor, M. (2006). Globalisation, poverty and conflict. : Dordrecht; London: Kluwer Academic Publishers Ikejiaku. ‎(2012). Poverty-Conflict Nexus. Retrieved from www.ecsdev.org/images/V1N2/ikejiaku%20127-150.pdf‎. Xing, L. (2013). The rise of China and the capitalist world order. Farnham, England; Burlington, VT. Ikenberry, G. J. (n.d). The Rise of China and the Future of the West | Foreign Affairs Retrieved from.www.foreignaffairs.com/.../the-rise-of-china-and-the-futu.. Dunaway, S.V. (2009) Global imbalances and the financial crisis. Washington, D.C. : Council on Foreign Relations, Center for Geoeconomic Studies. Dunaway, S.(n.d). Global Imbalances and the Financial Crisis. Retrieved from. www.cfr.org/.../global-imbalances.../p1869...‎ Read More