International Politics Essay

2514 words - 11 pages

Political Science Paper

“When the United States sneezes, the rest of the world catches a cold” - (Anonymous). The chain of events arising from the international economic crisis originating from the initial disaster in the United States has affected the vast majority of countries in one way or another. The amount of influence ranges from economic devastation of some nations at one end of the spectrum to national growth and prosperity at the other. In order to deal with the global crisis, countries have used an array of economic policies and programs in order to either revive their failing financial system or to maintain momentum of a successful market for the future. This includes ...view middle of the document...

In an attempt to combat the rising debt and unemployment, which has risen to nearly nine percent, the United States has established stimulus packages. The packages have resulted in nearly 275 billion dollars in tax reductions as well as another 500+ billion dollars associated with inter-domestic purchases (Wolf, Martin. 2010). Some say that the attempts will succeed in reviving the United States’ economy, yet to many it only appears that it will greatly burden the future generations with a maintained trade deficit and place the nation in even greater trouble. With these huge deficits one would believe that the U.S.’s power among the global community will be diminished, yet their military strength and national security will likely remain largely unhindered while the population suffers instead. The country’s failure to adopt realist policies regarding global foreign economic involvement and trade are preventing them from solving the problem although the interrelations and dependence of the large majority of nations upon the United States has merely added fuel to the global fire.

Brazil has also been affected the global crisis, but their economic prosperity has taken a different direction than that of the United States. Although they were originally hit quite hard by the crisis, involving a GDP drop of 2.9 percent in late 2008 and another drop of 0.9 percent in early 2009, previous economic structuring and strength as well stimulus and support programs have enabled growth and are beginning to create a financially sound nation (Dadush, Yuri. 2009). Yet with the stimulus and support programs in place, the extent as to how effective they will be and for how long remains hard to predict, although it is expected that the costs will be minor in the near future and end up being considerably large in the longer run. In order to better their national interest in the form of foreign advancement, Brazil has placed more emphasis on their trade and export industries under a realist approach of international coordination. This has allowed them to avoid unnecessary liquidity shortfalls and put a huge dent in their domestic debt, all while increasing export income without suffering from increased inflation. On top of this, their deep water oil industry has provided resources and an admirable GDP plus an out in regards to dependence on oil import. Their economic performance during the crisis and active international role has permitted Brazil’s influence to grow rapidly from an international point of view. Due to their realist approach of trade and export prominence, Brazil is expected to become one of the world’s greater economic powers in the future and has dodged the global economic bullet, so to speak.

India is a second country whose economy has not only avoided huge deficits and debt but has thrived and continues to grow as the second fastest globally. An initial GDP growth of 6 percent and steady rise to 7.9 percent by the end of 2009 was a surprise...

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