Consequences of Global Slowdown

Last week i was going through the exclusive report of Harvard Business Review, There was very detailed analysis on the future of global economy.I just want to present it in more simpler abstract.
How this Recession will act as a catalyst to reshape our world economy?,is a big question mark in front of us. Probably the answer lies in several interlinked issues and world economic and social policies.
In my last post,I have already given the latest half yearly GDP outcomes(as per IMF result Aug09) of the global economy which clearly indicate that the needle of global economic growth has been shifted to developing countries after this recession.the developed countries are saturating and that saturation is transforming as new contingencies in developing countries.last G8 and G10 Summit are the example of this where all economist and diplomats were emphasizing the new business opportunities in developing countries.
Developing countries are becoming relatively greater markets.as per IMF statics(Apr 09)-these will expand at 1.6% in 2009 where China' economy will be at 6.5% and India will be at 4.5%.while developed economy will shrink by 3.8% this year.
So what should be the next steps?
1. A growing divide: since the market is shrinking in developed countries hence there will be steep decrement in the export. To make it intact we have to generate demand in our own country or parallely we have to focus on new business areas in other growing countries(like AFRICAN Continent which is growing at 2% in 2009 as per IMF,and it also have a huge potential for export) where we can meet their demand and supply with our exports.for that our government must invest in infrastructures and they must reduce taxes particularly on products of low income consumers to maintain force in demand.

2. Return of family styled leaders: specially in BRIC (BRAZIL,RUSSIA,INDIA and CHINA)Countries,business is in the form of state govern or family oriented because of that they adopt long term perspective. driven by personal pride and national interest they don't dance to the tune of stock market.

3. A Reversal in M&A: since Recession indirectly bring the opportunities for the big fishes to eat small fishes(fish=company).but in emerging countries,the big giants must focus on small and medium size business for M&A, keeping their own monetary funding in mind. Tata's Jaguar and Land Rover deal could be the example of bad timing deal if they could not get money from the banks.

4. Sustainability: in last G8-G10 summit,climate control had discussed as a prime issue next to financial crisis. so now the policy maker must take it in consideration when they draft the economic policies. they must think on sustainable policies.for example: the policies for Automobile and Manufacturing industries must be drafted as per global carbon emission norms.

It is high time when our Economist and Politicians must sit together and they must explore new opportunities. It is true that it is only the 'Time' which will only tell us the real picture of recovery whether it is 'V' shaped sharp-recovery or 'U' shaped slow recovery.
Vibhav S is signing off.