The Economic and Political Effects of the Current Global Financial Crisis (2008 -2009)
Omar Khdairat, Irbid University College, Al Balqa Applied University, Irbid, Jordan.
Abstract
This study aims at identifying the causes and roots of current global financial crisis, economic areas and sectors of the countries affected which have been exposed to the first shocks resulting from the first tide of the crisis and the consequent and indirect effects on both the world countries and the Arab countries. Then the study will reveal its important findings the most important of which is that the world crisis is considered as one of the exceptional and very deep crisis in regard to its quantity and quality. On one hand, it is a unique global financial crisis which happened in the light of the existence of one dominate economic and political pole (U.S.A). On the other hand, the volume of its influence on the world has never been faced before in away that all the countries of the world have been affected by it. The current crisis is an opportunity for the start of a new global system, changing from the domination of one country to a multi-pole system, even if these poles are not equal in their power. Countries like China, Russia, Japan, India, Brazil, Korea and Iran are looking forward towards power and aim at asserting their role, if not to say their domination over surrounding countries. All this will finally lead to change in the balance of international and regional powers in the long course of time. There is no doubt that the benefits gained from these changes will be for the advantage of the countries which have prepared for them, while the bad consequences will for those countries which have not prepared.
This study stemmed from a hypothesis which states that there is a proportional relationship between capitalism crisis (independent variable) and the appearance of a new global system (dependent variable), namely ,the more duration of capitalism crisis leads to the appearance of a new global system. The study was based, for its analysis ,on the descriptive analytical approach, by referring to the series of successive financial crisis, different points of view about the causes and roots of this crisis, as well as the attitudes and measures taken by badly affected countries. The researcher did his best to obtain as much information as possible about the crisis from books, periodicals, magazines and internet sites.