This research material discusses the scenario prevailing in the Global economy and provides a glimpse on the effects of the global financial crisis and the significant measures taken under the theme of 'God's Global Governance'
If we analyse closely, there are definitely signs that we are now in the second phase of the global financial crisis. Lessons learned from the initial wave of crisis should effectively be used to reduce the impact on the global economy.And this is exactly where a firm global governance framework will come to work. If a transparent and foolproof governance system is in place, the new wave will pass without major damage. My philosophy is "Economies and corporations are self-balanced through God's Global Governance". Economies, institutions and individuals need to follow governance. It can be called corporate governance for institutions, and global governance for economies. Individuals are affected by corporate governance and global governance due to the links with institutions and economies, respectively. Sustainability is the key for long-term growth. If it had not been for the crisis, emerging economies may have not realized their strengths, and advanced economies would have continued to leverage. People, politics and policies are supposed to converge.
The global financial sector will witness significant changes on account of the current global crisis. In response to the crisis, global regulatory reforms have been actively reviewed under the leadership of G20 countries and in co-ordination with the financial stability Board (FSB), International Monetary Fund (IMF), and the Bank for International settlements (BIS). G20 has also noted the progress achieved by the Global Partnership for Financial Inclusion (GPFI) in implementing the Financial Inclusion Action Plan. The GPFI is expected to expand the G20 Basic Set of Financial Inclusion Indicators to cover innovative approaches, quality of products, financial literacy and consumer protection. The world is getting manipulated, and liquidity is only driving the markets.Currencies and interest rates have witnessed significant volatility. Moral and ethical governance is the key for sustainability. The current realignment of the global architecture will support the achievement of one of the eight UN Millennium development goals "to develop a global partnership for development," which aims to further develop an open, rule-based, predictable, non-discriminatory trading and financial system. This would include a commitment to good governance, development, and poverty reduction, both nationally and internationally. Economies need to integrate the principles of sustainable development into their policies and programs, and reverse the loss of environmental resources. This will also enable such economies to achieve the UN Millennium Development Goal of "ensuring environmental sustainability." The crisis is an opportunity to create a better world, based on sound transparent principles and ethics. This crisis is also an opportunity for real economies to prosper, and financial economies to correct their values to become real and more ethical so that the world becomes a better place.