Foreclosures in USA Jeopardizing World Economic Stability

Posted on July 3, 2009
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The effects of foreclosures in USA have spilled over across the ocean to jeopardize the economic stability of the world. This was discussed at a high level summit of the U.N. under the aegis of the president of the General Assembly, Miguel D’Escoto, in New York. Representatives of 150 countries participated in the meeting. D’Escoto speaking to reporters said, “Let’s hope and let’s continue praying that we will have a conference that is up to the exigencies of the gravity of the crisis confronting humankind.”

The Secretary General of U.N. Ban Ki-moon pointed out to the gravity of the foreclosure crisis and said, “Not a cause for any one person, nation or group of nations. It is a challenge for us all.” Although some pockets are showing signs of revival Ban Ki-moon warned that the real effect of the disaster could drag on for many years. Thus a many faceted approach would be required to address the problem.

The UN Committee for global fight against hunger has given out warnings that the international financial crisis will worsen malnutrition among the poor countries that are already at odds fighting hunger.

The UN Standing Committee on Nutrition said that the staggering increase in food prices combining with the international meltdown will force 1 billion of the poorest of poor in the world into hunger during this current year of 2009. The body is putting pressure on governments of the world to see that small hold farmers are able to increase their productivity, improve the livelihood possibilities of the poor families and see to the supply of safe and cheap food. In a news release UNSCN stated, “Experience from previous food crises shows that the first move by poor households is to reduce food expenses and cut down on non-staple food consumption. These coping mechanisms first affect the diversity and safety of diets, the size of portions and ultimately the energy intake.”

It is apprehended that the world economy will contract by 1.7% and GDP in the developing world to slow down to 2.1%. Recession is the forecast for these parts of the world. A staggering 53 million will be added to the swelling ranks of poor in this current year – this being in addition to the jump to 155 million from 130 million in the last three years. To tackle this working hours have to go up by another 10 hours per week.

Simultaneously an urgent call was given out to governments for the implementation of green economy.

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