The Global Capitalist Crisis Haunts the Forum of Davos

By Redaction AHORA / redaccion@ahora.cu / Monday, 01 February 2010 09:28

The Economic Forum of Davos celebrates its 40th anniversary beset by an unprecedented global crisis of the capitalist system, which effects could be felt for much longer than the experts agree, particularly in two very sensitive issues: job losses and the consequent restrictions of consumption.

While heads of state and government, business leaders, experts and executives of multilateral organizations discuss measures to restore the system, the number of jobless is growing worldwide.

According to the statistical office of the European Union, at the end of December, unemployment reached almost 10 percent among members of this European body. This represents the highest number of the last decade.

Among the most affected countries by this phenomenon is Latvia, with 22.8 percent of unemployment, and Spain with 19.5. The persistence of this situation shows that the economic turmoil continues.

The first world power, the U.S., began this year with the record rate of 10 percent of unemployment. Nevertheless, several sources state that 17 percent would be a closer figure to the truth if we take into account those who work only a few hours a day, and those who already stopped looking for a job.

Barack Obama himself had to devote a good part of its first State of the Union address to the economic situation, in order to try to inject some optimism into the economy.

The lack of jobs and therefore the lack of incomes for millions of families hang like the Sword of Damocles over a financial bubble on the verge of explosion. The market for credit cards which moves billions of dollars a year.

A massive non-payment of interests caused by the use of the so-called “plastic money” can cause a collapse of the financial system with unforeseeable consequences.

Let’s remember that since the beginning of the global capitalist crisis, about 40 million people lost their income, most of them in the U.S. and the European Union, where the use of credit cards is almost universal.

If the global economy progresses well, it may take five years to get back to the employment levels of 2007. Unfortunately, all indicators show the world is moving in the wrong direction.

According to a study carried out by the Central Bank of England, the developed countries spent about $14 billion to maintain their financial institutions, instead of using this money to protect jobs and create new opportunities.

According to several entities, it will be really difficult to recover all this money, and in the end, this problem will be finally assumed by the States by cutting their expenses in public services such as education and health, with major negative impact among the poorest and neediest people.

If to all this information we add that the planet is also going through periods of severe energy, environmental, food and social crisis, we can be sure that the meeting in Davos will need magicians, more than experts, to resolve the situation.

We are sure that the 40th meeting of Davos won’t have very positive responses to our poorest countries. They must turn their eyes immediately to look for new ways to face reality such as models of cooperation and solidarity, moving away from the Jurassic rules of the capitalist market, which in the end, is mainly responsible for the current and future crisis. / RHC

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