Time: Financial Crisis Undermined Global Order

Crises give countries an incentive to adjust, and the 2008 financial crisis – following on the heels of the costly war in Iraq – eroded confidence in US leadership and capitalism. Likewise, Europe struggled with the euro crisis and a stream of migrants fleeing unrest and conflict in the Middle East. “Today, the global balance of power is no longer clear,” argues Ian Bremmer for Time. China quickly responded to the financial crisis and demonstrated the power of state-driven economic development. “China also now offers an increasingly credible alternative to both multiparty democracy and free-market capitalism, one with real appeal for governments, particularly in the Middle East and Africa, that want to maintain a tight grip on power,” Bremmer explains. “As China’s investments expand in every region of the world, it becomes ever more obvious that U.S. power isn’t as persuasive as it used to be.” The rest of the world is assessing which systems are most effective at providing stability and addressing challenges like inequality, sustainability, job creation, reliable infrastructure and productivity. – YaleGlobal

Time: Financial Crisis Undermined Global Order

The US did not learn from the financial crisis and its global influence has eroded – debt and isolationist trends reveal the limits of superpower

Ian Bremmer

Friday, September 21, 2018

Read the article from Time about the decline in US global influence.

Ian Bremmer is a political scientist, author, professor at NYU and columnist at Time.

Time

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Global Economic Crisis

The 2007-2008 global financial crisis was the worst seen since the Great Depression of the 1930s. For younger generations, accustomed to mild recessions of the new phase of globalization, the misery of the Great Depression is hitherto nothing more than a distant legend. However, the collapse of two Bear Stearns Hedge funds in summer of 2007 and the bankruptcy of Lehman Brothers in 2008 exposed what came to be known as the subprime mortgage crisis, reintroducing the world to an era of bank failures, a credit crunch, private defaults and massive layoffs. In the new, globalized world of closely interdependent economies, the crisis affected almost every part of the world, receiving extensive coverage in the international media.

“In an Interconnected World, American Homeowner Woes Can Be Felt from Beijing to Rio de Janeiro,” observed the International Herald Tribune at the onset of the crisis. “Chinese Steelmakers Shiver, Indian Miners Catch Flu,” noted the Hindustan Times. “US and China Must Tame Imbalances Together,” suggested YaleGlobal about an ongoing frenzied search for a solution around the globe.

In this special report, YaleGlobal details why the crisis started, how it affected the industries and consumers worldwide, and what solutions have been proposed by experts and regulators across countries.