Approaches to Crisis
We are now facing one of the most critical moments of the financial crisis and the major decisions that are taken on a global level can make the difference between exiting the economic deadlock or continuing the decline. All these can have unpredictable and unwanted consequences.
The perspective in the context of globalization, from which only few emerging countries (mainly the BRICS Group) can sustain high growth rates will lead to a long term repositioning of the global economic spectrum, with unpredictable long term effects.
Although the American and the European economies are somehow independent and have been in the last century the engine of the global economy, their approach to this crisis in particular is totally different. USA encourages the consumption through small taxes and money pumping in the financial system in order to recover its economy. On the other hand, Europe has chosen to adjust its spendings and consumption by controlling deficits with significant risks over economic growth. The future will tell us which of these two policies will help the world out of crisis or maybe another path coming from another continent will prove better.
The European austerity policy is strongly influenced by the totally different attitude in front of the crisis, especially the attitude of the Mediterranean countries which are common with a casual lifestyle in contrast with the Nordic countries, especially Germany, on whose shoulders stand most of the problems generated by the European deficits.
European citizens will have to understand and accept the decisions taken by the European leaders, because in the last instance, they will be those who will have to cope with the crisis difficulties.
Unfortunately, Romania has lost the chance to revive its economy in 2010. This has happened because of the steep and simultaneous adjustment of incomes and tax increases. The country is dependent of the exports revival in the countries which have been good partners during the last years. Also the absence of foreign investments and the low percentage of EU Funds attracted contribute to the current situation
Dr. ec. Adrian Crivii, MAA, REV, FRICS