Maravi

The economic crisis – what would work

The economic crisis – what would work
Written by Dr Kenneth D. Kaunda
Monday, October 27, 2008 10:35:50 PM

THE financial crisis that this world faces today is of global impact. Our leaders, world leaders that is, and here I am talking about world leaders in terms of the developed world, have been making effort to meet together to see what it is that we can do together as human beings of this, our one world.

The United States of America, has had its law makers approve $700 billion as proposed by President Bush to throw, and I deliberately use the word “throw,” into their economy.

When President Bush first made this proposal to the House, it met with very serious rejection, especially from his own Republican members of the House. After a lot of discussions, in the end, this proposal has been accepted.

The question is: why did President Bush have to make this proposal? What is the situation on the ground of that economic giant of our one world? Anywhere and everywhere in this, our one world, housing for families is an extremely important matter.

Before this crisis, USA witnessed a terrifying fall in the house market. American who had made various arrangements to own houses began to experience grave difficulties in meeting their obligations to continue with that ownership.

The various methods they had used, with the various banks they have used to own those houses, began to slip through their hands. They began to run away from their homes, without even accounting for their failure to meet their obligations. Collapse of the financial system has come down very heavily on them. In the end, many lost out. It was the beginning of this financial crisis of global impact.

Yes, USA responded through President Bush by that $700 billion we have referred to. But that is not the answer to the problem. By this time President Bush was trying to restore the lost confidence. The question is: Did he succeed?

The truth of the matter is that this is a world crisis. So some leaders worldwide have been concerned.

Apart from the United States, Europe began to feel this same heavy weight problem. Gordon Brown, in Britain, began to intervene. There were serious differences and quarrels in parliament. At first, the Tories supported what Gordon Brown was doing but only a few days ago, on Wednesday 22nd October, Tories began to distance themselves from supporting Gordon Brown and his Labour Party.

The European continent has been going through similar problems. The giant economy of Germany was not spared. Government has had to intervene. We also see that in Asia, Japan is facing similar problems. Government has to decide to intervene. Yes, India has been enjoying its success story of joining both Japan and China into sending some craft into space. But the pain of the United States economic crisis is telling in India as well.

It is obvious that when all these economic giants at various levels of development have been going through these great difficulties, Africa and South America will be naturally not only affected but also shaken. Already, we are beginning to feel what this means in terms of our economic activities.

It is not surprising that already so many meetings have been held between the economic giants. And yet, only the other day, Wednesday 22nd October, United States President George W Bush first called for a world summit of leaders. And on 23rd October, he has added that some African leaders would be involved.

So very soon, a global summit to fight this global problem will be called. It is good, at this juncture, to remind my reader that USA elections are taking place on November 4, 2008. By the end of January 2009, the world will be receiving a new United States of America president.

A digression a bit. I hope my reader joins me in prayer to God our Creator that He guides those great American people, of all colours, in electing Barack Obama as USA president. The polls are showing he is leading against his Republican opposition John McCain. We who have been following, from a distance, the campaign, have noted, with joy, that Obama was leading. As I see it, electing Barack as president of the USA, would be a nice development. It will have effect on the American and world economy.

To go back to our current subject of economic crisis, I learnt that the other day, on Wednesday 22nd October 2008, United Nations have been calling for a conference of poor countries. We know, as they define poor countries, which countries these. But it is clear that in a divided world, the salvation of the poor of the poor, and their United Nations, lies in working together.

The question we must ask ourselves is: where is our world going to? We don't have to worry. What I like about these leaders of the United Nations, is that this world body has invited that Nobel prize winner in the economic field, Prof Joseph Stiglitz to be advisor to poor country leaders.

He is very well qualified in this situation. So, we see now that many conferences are being called at various levels. Leaders of the rich countries and poverty stricken countries are being organised to share their experiences with a view of finding common solutions.

In the end, we must all go back to the question that the whole developed countries are asking. The question therefore is : what Will Work?

Many leading bankers have recently lost their jobs because they lost billions of dollars and pounds. They lost billions of Euros. All these are old capitalist organisers. Does it mean that the capitalist system the West had been boasting about has been cheating us all?

We can only appeal to all those involved in working on this challenge to find a legitimate answer to this crisis. They should put their heads together to find us an honest and lasting answer. We cannot advise as to how they go about this. All we can say is that capitalism has collapsed. It has collapsed in United States of America, the United Kingdom, and Germany. It has collapsed in France and Japan.

Where else can we find a capitalist system that has worked ever since 1929/1930 and the depression? We must pray that the entire world will work together and find a solution to this financial crisis. May the Good Lord, God Almighty, help us all out of this crisis!

May I end this message on the world financial crisis by joining in reminding all fellow Zambians and all our friends of the fact that our 44th anniversay of independence is here. Yes, on August 19, 2008, we lost that great son of Zambia Dr Levy Patrick Mwanawasa, SC, in that tragic way.

But we have stood together so far. And we are moving towards the 30th of October and presidential by-elections. My plea is that every Zambian must remember we all have responsibility to see to it that peace continues to rule in Zambia. God will continue to guide us if we continue to remember the Commandments we have been taught. These are: “Love God your Creator, with all your heart, with all your soul, with all your mind, and with all your strength.”

My dear Brother, my dear Sister, my dear Child, this is how we relate to God, our Creator. As to how we relate to each other, we that God has made in His image, it is to “Love thy neighbour as thy self,” and “Do unto others as you would have them do unto you.”

Remember, this is across anything artificial. This is across ethnicism, race or colour, and not even faith should disturb us. Yes, “Stand and Sing of Zambia, Proud and Free.”

44 years after our independence in October 1964, we must continue to thank God for allowing us to remain together through many pitfalls and challenges. I am saying to every Zambian: thank the Lord for this. Just remember what God has taught us. I am confident Zambia will pull through these economic challenges.

We have had peace and stability. Peace is what we need most. We need to stand together, peace is important. We must continue to have peaceful elections. Let us all unite, regardless of who wins the October 30 presidential by-elections.

We must continue to stand together. We must accept the decision of the people of Zambia. We must accept whoever is elected president of Zambia. Together, we can strengthen the economy, and various fields of our human endeavour.

Labels: FINANCIAL CRISIS, KENNETH KAUNDA

posted by MrK @ 10:37 PM