Economic Crisis Kerala Essay

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GLOBALIZATION
Impact of the Economic Crisis 2008 on Brazil and Kerala and a Sustainable Solution for it

Introduction “Worst Crisis Since '30s, With No End Yet in Sight” (Jon Hilsenrath, 2008). 2008 was a year which collapsed many of the world’s greatest economy. It was the year where not only a region, a country a continent but the entire globe was in the same boat, and that was The Economic Crisis. The Economic Crisis not only led to recession, but also led to a highly increased unemployment rate around the world. The financial crisis was referred to being, ‘The crisis of wealth destruction’. By March 2009, US $34.4 trillion of global wealth had been destroyed. Some countries stood strong during this crisis, but some had to go through …show more content…

Kerala (A state in Southern India) and Brazil are two good examples of this. These both state/country faced the crisis in their own ways, where Kerala developed the concept of Micro-Financing Banks alongside promoted Women Empowerment, Brazil’s Economy had started to demolish in 2009. But the question here is, what both the places did differently that can be further on used in the future, to prevent another financial crisis. What measures did Brazil take in terms of their banking to survive this global crisis? Is there a sustainable solution to this problem, if yes what? Before going into detail about these questions it is important to know what the Economic Crisis is and why it happened.
The Economic Crisis- The Bigger Picture The Economic Crisis is considered to be the worst crisis in history after the Great Depression (1930). The Financial Crisis resulted in the bailout of …show more content…

It is hosting the FIFA World Cup this year (20140 as well as the Summer Olympics in 2016. This requires massive investments in urban and social development sectors as well as development in the transport infrastructure. Though the Brazilian Economy has slowed down since 2011 due to domestic and external factors, the financial and banking system have remained strong and resilience during this slowdown. Government has been active in the past few years, introducing number of initiatives to reduce energy costs, restructure oil royalty payments, strengthen investment in infrastructure through foreign participation etc. Poverty has also decreased from 21% in 2003 to 11% in 2009. A significant decrease in income inequality has also been observed. Environment is one sector, where some great concern has been shown by the Brazilian Government. There has been phenomenal progress in decreasing deforestation in Brazil, but a sustainable solution is still required to ensure environmental protection. (Worldbank.org- Brazil

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