There are tons of paper covered with wisdoms on globalization and today’s interconnected world, but if anyone had still any doubts to what extend we are really intertwined with each other, the financial crisis should not leave any space for uncertainties. With maybe the exceptions of some anachronous enclaves like North Korea or Cuba and not even Bantustans of South Africa, we are affected by the crisis and if not yet, tomorrow we will all suffer its consequences. The only question is how severely and for how long?
The G20 summit has just concluded in Washington. Right after the European Parliament held a debate to sum up its results as well as to see what is Europe’s role in fighting the global challenge of the crisis. What seems evident is that our anti-dote is simply the European integration. It is trivial but it is true. In Washington the EU spoke with one voice. It was a strong voce. As Jose Barroso, EC President said, the summit and international debate on the crisis took place to a larger extent thanks to the EU. If then, we continue, not only to talk, but also to act as one - we can count on accomplishing whatever is necessary to limit the scope of damage as well as the risk of such crisis happening again. This method has proven already — the European Monetary Union — today seems a blessing for the Old Continent. I don’t even want to imagine what would happen if not existence EURO zone. Smaller economies, would most likely not survived such a blow. The example of Island, who stood outside, is more than vivid. In almost one day, the country found itself on the verge of bankruptcy. Today it is talking of joining the EU.
This is not to say that the EU has no worries, not at all — it simply illustrates that if not integration the consequences would be catastrophic. Similarly, the results of the summit in Washington are going in a parallel direction. Those present agreed that more cooperation and concerted action is needed on many levels. Some speak even about beginning of the new world financial governance. The fear of collapse of world finances has brought many to the table. Interestingly enough it turns out that the exclusive G8 was too small and too weak to try to face the challenge and only G20 can do it. This is good since, as I have already mentioned, the crisis is global and needs a global approach. It shows also however quite clearly that the world has become a multipolar place, where all the poles are interdependent and where the failure of one may cause a domino effect and drag the rest down.
I tend to agree with those who say that the developments we are witnessing may really be a start of something new. There is no doubt we will have to redefine our thinking on many, many aspects of world economy. Hopefully the EU with its experience in constant overcoming of crisis will be of great assistance to other international players.
For the end - while we all talk about recovering economy and finances, we must not forget about rebuilding trust in financial institutions. People have still their trust in states not in the latter. I worn everybody that it will take years to do it. It may probably be the longest lasting after-effect of the current crisis.
