Just a few weeks after releasing its official forecast for the next year, the International Monetary Fund (IMF) adjusted its growth estimates downwards, predicting that poorer countries will see big losses in GDP over the next two years as a result of the global financial meltdown. Independent assessments estimate that developing countries’ losses between now and 2010 will be in excess of $300 billion.
Rumors of the International Monetary Fund’s demise appear to have been greatly exaggerated. While the IMF has spent most of the last three years looking for clients and “relevance,” the end of the U.S. housing bubble and the resulting global credit crunch seem to have given the institution a new lease on life.
When the Mexican dictator Porfirio Díaz said the great tragedy of Mexico was that it was so far from God and so close to the United States, the comment summed up the long and tortured relationship between the Colossus of the North and Latin America.
Following several weeks of widespread global financial turmoil, leaders of several of the world’s most powerful countries are planning a summit and a series of meetings to address this burgeoning crisis. The November 15 summit and an accompanying series of smaller meetings will weigh the potential for reforms of the international financial system. Some are calling these meetings “Bretton Woods II,” in reference to the New Hampshire conference held in 1944 that created today’s main global financial institutions, the World Bank and the International Monetary Fund.
The first of the 388 workers arrested in the immigration raid on the Agriprocessors meatpacking plant in Postville, Iowa, were deported in mid-October, having spent five months in federal prison. Their crime? Giving a bad Social Security number to the company to get hired. Among them will be a young man who had his eyes covered with duct tape by a supervisor on the line, who then beat him with a meathook. The supervisor is still on the job.
Given the magnitude and scope of the current economic crisis, the world will no doubt experience a significant economic downturn — of what degree and duration, no one can say — profoundly affecting all aspects of U.S. and international society. Of the many areas that will be impacted by the downturn, the environment stands out in particular. It’s closely tied to the tempo of resource consumption, and significant efforts to ameliorate environmental decline will prove very expensive and out of reach for already-stretched budgets. The question thus arises: Will the crisis be good or bad for the environment, especially with respect to global warming?
Rarely in politics do we witness such a rapid transformation as Senator John McCain’s recognition of America’s current financial crisis. Until the middle of September 2008 — throughout myriad home foreclosures, personal bankruptcies, and even the failure of hallowed Wall Street firms — the candidate stuck with his mantra that “the fundamentals of the economy are strong.” The true believers who gathered with him in Minnesota for the Republican National Convention gave this sentiment a hearty cheer.
Like torch-bearing villagers descending on a heretic’s home, leading commentators such as The New York Times, USA Today and The Washington Post editorialists, Andrea Mitchell, Fareed Zakaria, and BBC editor Matt Frei, have warned Democratic presidential nominee Barack Obama in menacing terms: stop “pandering” to unions on the issue of unrestrained corporate globalization.
The 2008 Beijing Olympics represents a golden opportunity for the brand-conscious sportswear industry to associate its products with the cherished Olympic brand. For a costly, but manageable sponsorship or licensing fee, a sportswear company can infuse its athletic shoes and clothes with the lofty Olympic ideals of fair play, perseverance and, most importantly, winning.
