The global economy has suffered a great deal in 2020. Capitalism had a great promising start where wealth creation concept was promoted for each of the individuals and businesses who could build upon the capacity. Well, this couldn’t reap benefits at the time when it was needed the most, and millions were laid off the job.
You can’t blame the corporations and business owners too as they never portrayed themselves as the bearers of economic wellbeing’s of the masses. Corporate Social Responsibility is still an evolving concept and a campaign or two are run by them to depict that they care for the people. Economic lockdowns, business closures, and too much operational costs could never have been sustained for quite long months.
This has been realized by the global community that the harmony lies in cooperation rather than confrontation. If the economy of one country or region is affected, it has a rippling compound effect on the global economy. For instance, tensions between two superpowers US and China have halted the growth patterns that were being observed.
Also, the environment poses another challenge to global existence. If things are not reversed as being said, it can lead to a catastrophic situation in the coming decades. There is a dire need to sit down once again for the world leaders and devise a long term solution, otherwise the current economic models are falling apart for the masses.
The digital economy is on the rise
Since 2009 with the inception of bitcoin, platforms like bitcoin era and cryptocurrency markets have continued to evolve with the latest technological trends. Individuals who have been involved in online trading, they have never looked back to the traditional financial markets with their investments.
Also, the volatility of the situation stops people from investing in the big players as they are under the rigorous checks of foreign authorities. Technology platforms, mobile applications, and other startup ventures that tend to get hands-on user data have raised eyebrows for the national security of various countries.
Recent economic trade wars and oil prices falling negative has put a strong emphasis on the investment markets that traditional commodities are no more sound. Investor’s community now look for further options where they can see the minimum impact of third party interferences and political uncertainty.
These are the prime reasons why platforms supported with technologies like Blockchain are getting popularity among the traders. These kinds of trading platforms are decentralized and authorities are still to devise a solution where they can monitor this mode of economy. It was on the agenda of the World Economic Forum 2020 that took place in January to devise integrating methods for digital platforms with traditional economic modes.
Globalization has been weakened a bit in recent economic spats with protectionist policies on the rise. Also, the debate between capitalism and communism has started once again and it has been quite evident during American Presidential elections. There is a dire need for world leaders need to rethink global economic strategy.
The platform for UN can be quite feasible and convenient. A long term solution is to be devised where weaker economies are to be supported too. If any country faces health or an environmental disaster, the effects can lead to a global disaster as it has been experienced quite a few times.