Week 8 Discussion INTL 5400 Lecturer: Introduction Capitalistic economies have been facing numerous challenges that may have contributed to global problems (Harvey). Among the problems faced may be attributed to human frailty, institutional failures, lack of proper policies to regulate the flow of funds as well as cultural origins to mention just but a few (Harvey). Additionally, environmental degradation has also been reported to escalate global problems (Brown, pp2-3). This because human activities has led to an increase in temperatures leading to global warming (Brown, pp1-4). In above connection, Keynesian theories of economics have been put forth to substantiate the possible solution to the global problems. Therefore, this study will provide a sharp insight on the world problems as well as possible solutions that can be employed to address those problems. Problems the world faces The world has been facing numerous problems for many years some of the major factors that contribute to those problems include. Institutional failures (Harvey). Whereby, financial institutions such as banking systems have been so reluctant at establishing necessary policies aimed at regulating the flow of credit in an economy (Harvey). In above connection, policy failures by Breton wood institutions such as International monetary fund and World Bank have contributed significantly to global problems (Harvey). This is because those institutions tend to place strict rules that inhibit growth and expansion of capitalistic economy such the US (Harvey). Environmental factors such as global warming as a result of human activities have significantly contributed to the global problems (Brown, pp1-4). This has further led to a problem of food insecurity especially among African countries (Brown, pp1-4). Among the countries that have been adversely affected by food insecurity problems include. Sudan, Zimbabwe, Somalia, Democratic republic of Congo, Ethiopia, Sri Lanka, Bangladesh, Afghanistan to name just but a few (Brown, pp1-4).Those countries have even exposed other countries into the risk of terrorism attacks, drugs trafficking, spread of diseases as the number of refugees tend to escalate (Brown, pp1-4). In above connection, Debt crisis has been another significant cause of global problems (Harvey). Whereby, capitalistic economies spend a lot of revenues in financing their huge foreign debts rather than using this revenue to finance their economic growth (Harvey). In above connection, unemployment has been reported to be significant global problem that has contributed to global failure as people who are willing and able to work can not find a job (Harvey). Additionally, human frailty has been reported to escalate global problems as people become dissolutions on what to do in order to curb economic crisis (Harvey). People have been Obsess by with false economic theory such as Keynes to an increase in the global problems (Harvey). In above connection, oil exporting countries such as China, Venezuela among other nations have contributed to global problems through their acts of rationing and increasing oil prices (Seitz, John and Kristen, pp-122). Whereby, making importing countries like the United States to incur heavy importation cost (Seitz, John and Kristen, pp-122). This is because countries spend most of their revenues in financing global debts advanced by IMF and other Breton wood institutions rather than utilizing their revenues in promoting economic growth (Harvey).Solutions to the world problems According to Keynes the government can address global problems through application of both fiscal and monetary policies (Global Research, 2011). Keynes asserted that in order to promote growth of a capitalistic economy, there should be proper control economic control by the government and economic experts (Global Research, 2011). The state should improve economic stability as well as promote growth through taxations and regulation of interest rates (Global Research, 2011). Keynes further asserted that problem of great depression can be addressed through reduction of interest rates as well via infrastructural investment (Global Research, para-1). In above connection, Keynes urged the states to leave within their means in order to address some of the global problems (Global Research, para-6). Keynes allusions were formed on the basis of two illusions namely. enforcement of state reforms after the Second World War (Global Research, Para-2). Secondly, economic expansion posts the Second World War via diversification of investment based in different regions (Global Research, Para-2). Keynes believed that capitalistic should address unemployment problems through economic expansion as well as through establishment of policies that can enhances jobs creation (Global Research, para-4).Conclusion Therefore, it can be scrutinized that the world has been facing numerous problems ranging from institutional failures, environmental problems, policy failures, human frailty, cultural failure to mention jut but a few. The above problems may be addressed by first identifying their root cause as well as determining the necessary measure that can be put in place. Conclusively measures that can be employed to address global problems have also been put forth by Keynes.Works CitedBrown.Lester.R. Could food shortages bring down civilization? May 2009 .Retrieved :lt. http://biomass .age.uiuc.edu/images/c/cd/FoodShortageBrown.pdfgt.On 2nd March 2013.Global Research. Solutions to the Global Economic Crisis: Keynesian Myths, Hopes and Illusions.6th November 2011 on 5th March 2013.Harvey. David. RSA Animates-Crises of Capitalism.20th June 2010.Web : accessed on 5th March 2013.Seitz, John L, and Kristen A. Hite. Global Issues: An Introduction. Chichester, West Sussex: John Wiley amp. Sons, 2012. Print.
Week 8 Discussion INTL 5400