Monday 16 April 2012

IS THE CRISIS GLOBAL?

China Daily

GLOBAL CRISIS, WHAT GLOBAL CRISIS?

Branko Milanovic

China Daily, April 16, 2012

The current economic crisis is called the "global financial crisis". But is the term "global" really justified?

Yes, in much of the developed world - in Europe, North America and Russia - growth spluttered - and in many countries, but not in all years, rates of GDP growth turned negative. And yes, global output declined by 2 percent in 2009, but it also rebounded by 2.7 percent in 2010, and it is estimated to have risen by least as much in 2011.

The rebound of the global economy was actually dampened in the last two years because the crisis affected most developed parts of the world. These parts produce more goods and services than the other parts, so if their output goes down or stagnates, it tends to drag the global GDP down with it.

The global economic statistics we use show a tremendous Western, or rich world, bias. There is an implicit weighting scheme in the calculation that is seldom acknowledged. It is called "plutocratic" weighting, and it gives greater weight in the overall calculation to richer countries.

While the "plutocratic" growth rate gives an exact metric regarding what happens to overall economic output, a "people's", or population weighed, growth rate gives a more accurate idea as to how economic growth, or lack of it, affects individuals across the world.

(...) [artículo aquí]

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