Source: World Policy Institute
Big Question: Paths Out of the WildernessThe international financial crisis showed that the actions of a few individuals can have quite detrimental global effects. Russia’s decision to ban exports of wheat last summer led to a price-hike in international markets and created food-security concerns. The absence of social safety nets in China leads to excessive saving and hurts the U.S. economy by discouraging spending on imports. Win-win solutions—sustaining the economic recovery while creating more resilient societies—will require policymakers to understand their interdependence and implement regional and international partnerships to address it. These partnerships will need to go beyond basic economic-growth objectives and work on improving standards of living through education, employment, justice, freedom of expression, and political participation. Ensuring social security reinforces identity and creates a sense of belonging to a community, reducing the risk of uprisings that could threaten the recovery. Political stability, democratic governance, and human-rights protections are key ingredients of any forward-looking strategy to spur and sustain economic recovery.