Word has it that the world as we knew it will no V V longer be the same after the terrible 11 September attacks in the US. On the economic front, the impact is going to be severe. Even before the terrorist attacks, the global economic scenario was looking gloomy. Taiwan, Malaysia, Thailand, Singapore and Hong Kong were all suffering from an economic slowdown. Japan was in stagnation. Europe faced a worse-than-anticipated GDP growth in the 12 countries that share the Euro. Latin America, plagued with its own financial problems, was finding the prospects of recovery remote, and looked to the US for a bailout. But economic data released in the week preceding 11 September already pointed to a slowdown in the US economy.
The 11 September events have sharply increased uncertainty about the American economy and thus, about the global economy. As Asia Week put it, distance offered no buffer when the World Trade Centre was struck; the attack at the heart of the world's financial centre and the blow aimed at the US would be felt just as sharply by every country that participates in the global economy.
All indications suggest that the US economy is rattled and that recession is unavoidable. What is a matter of debate is how deep the recession will be and for how long it will last. Consumer spending has touched an all-time low because of fears of more terrorist attacks in shopping malls, airports and public places. Securities, transport, tourism and retail have been the first to feel the shock. The aviation industry has already announced cut-backs and requested financial support from the government to face up to the drop in travel and the demands of security. The effects are now being felt across the globe and across all sectors of international industry. The world is moving towards recession. Given this situation, the Fourth WTO Ministerial Conference that is to take place in Doha in the first half of November promises to disadvantage the poorer countries further. Is there an alternative course possible?
Uruguay to Seattle