Wed, 15th October, 2008 - Posted by
Source: Yorkshire Post
THE financial collapse we are seeing all around us may prove to be an economic 9/11. That was a security crisis, with security implications. This is an economic crisis, but its social and security implications are potentially just as severe.
In our world, economic strength is power, and until the dust settles from this crisis, we don’t know where the power will lie. The international landscape may change radically, and that will mean new risks and new threats.Any student of history knows that economic turmoil creates instability. Just think back to the Great Depression of the 1930s, which created the conditions for the resurgence of fascism that culminated in the Second World War. In the public imagination, economic failure is twinned with political failure. Dictators and fundamentalists use deprivation to their advantage, tapping into frustration to spark violence and secure loyalty. We see the consequences of economic insecurity all over the world, from Afghanistan, to Pakistan, to the poorer parts of our own country. Here in the UK, fundamentalists prey on men and women alienated by widening inequality.
We need to take steps now to restore economic stability and with it political legitimacy. Without firm action, the outlook for international relations will be bleak. Developed nations facing recession will have less money to spare. For countries where developed nations have been loathe to intervene, like Zimbabwe, Burma and Darfur, the domestic economy will be another excuse not to act.
Recession could also threaten existing military action. In Afghanistan, our troops lack vital equipment, the helicopters and armoured vehicles to carry out their mission effectively. The mission in Afghanistan may need to last many years. But recession could make that impossible.
In this new order, we will doubtless see a different America. America’s role in the world has undergone great change, but its relative decline will be fast tracked by the economic crisis. The country that lost its moral credibility with the war in Iraq now risks losing its economic credibility as well.
financial collapse, “New World Order”