The world is now at a crossroads. No one really knows what the future will bring. No longer can we rely on the eminent economists' views or the so-called global credit rating agencies. Is it not time the well-known rating agencies themselves should be rated on their yardsticks for measuring the performance of other companies?
I believe that globalization should give way for globalization with a human face. Even in richer Western countries, the poor must be protected. The concept of the welfare state is back on center stage. US President Barack Obama will have learnt to his horror what Abraham Lincoln said about unbridled capitalism: "These capitalists generally act harmoniously and in concert to fleece the public".
The media have even coined a new word, "Obamanomics", to describe the multipronged steps that Obama, with his stimulus package, is proposing for unclogging the US economy and the myriad of problems associated with its banking system.
Cures have to be searched for, even before fully understanding the underlying causes of the problems, and the US leadership just does not have the luxury of time. Obama does not have a magic wand to wish away the global recession. He acknowledges that there is no quick-fix solution and there is no "silver bullet".
One thing is to be said of President Obama. He exudes confidence and calls himself an eternal optimist, the right kind of leadership the world needs at this critical moment in history.
Decisions taken by Obama will likely have far-reaching effects, which could reshape how the world economy will operate in the future. People must have confidence that capable and wise leaders are at the helm. Leaders should set examples for simple living.
The rich must avoid ostentatious display of wealth. As the saying goes, "The richest person is not the person who has the most, but the one who needs the least". From the government side, there should be no wasteful expenditure such as organizing massive functions for opening new tollgates, flyovers, etc. or for legislators' junkets abroad for negligible reasons at public cost.
Management and workers should try and ensure that that there are no layoffs or industrial strikes. International institutions like the World Bank, the IMF and the ADB should start focusing on the macroeconomic issues and suggest solutions on how to avert such economic upheavals in the future.
I recollect a comment on the political and economic crisis that Indonesia went through in 1998 - "Tuhan harus turun tangan" (God alone can handle this mess). This expression can apply just as much to the current global economy.
D. Chandramouli
Jakarta
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