The global economy faces a number of serious
challenges in the 21st Century. Globalisation has benefitted most participants, but the increasing
Some global problems are short term, such as
the recent recession caused by the
and related banking crisis. Most global shocks
are relatively short
term and may be self-correcting. Other apparently short run
events can have long lasting effects, such as the oil shocks of the
1970s, which permanently altered the global market for oil.
Other global problems are longer term, and may
require a strategic approach to finding solutions. These problems
include global inequality and
unequal economic development,
global poverty, the exhaustion of
non-renewable resources, depletion of environment and global
warming, and systemic
problems associated with inadequate regulation of financial market.
