Financial crisis or Economic crisis is that situation in which any country faced some financial asset lose their market value. In financial crises, any country GDP ( Gross Development Progress) goes down suddenly. That time a country face the financial crises. A daily needs products value goes up because the export of the country goes down and import of the country will be high. Many of the countries faced this situation in past. In this situation, many industries faced the problem with finance like the banking sector, Technology sector etc. Even if we take an example about after India has taken a step on Jammu and Kashmir. Both countries stop their trades due to this Pakistan is facing these economic crises right now.
Can the Venezuelan crisis become a global problem?
The current internal political crisis of Venezuela is now in danger of reaching the global level. While the United States and other countries have spoken of supporting Venezuelan opposition leader Khuan Guido, countries like Russia and China have stood in favour of the current President Nicolas Maduro. Protests in Venezuela demanding President Nicolas Maduro’s resignation have turned violent. At the same time, prominent opposition leader Khuan Guido has declared himself the interim president on Wednesday. After the announcement of Guido, he got support from the USA, Canada and powerful neighbouring countries like Brazil, Colombia and Argentina. The European Union has also demanded re-election in Venezuela and has given its support to the National Assembly led by Guido.
Read More: Is Delhi a crime Capital Of India?
Russia and China support Maduro
However, Russia, China and some other countries have announced their support for Nicolas Maduro. On Thursday, Russia warned that Guido’s announcement was a “direct path to anarchy and bloodshed”. A statement from Russia said, “We warn against the risks that lead to disastrous consequences.” Meanwhile, on Thursday, China’s Foreign Ministry spokesman Khwa Chu Nying said in a press conference that China is against any foreign “arbitration” in Venezuela. Khwa Chu Naying said, “China supports Venezuela’s efforts to preserve its national sovereignty, independence and stability. China has always carried forward the principle of non-interference in the internal affairs of other countries and external arbitration in Venezuela Opposed. “
Turkey, Iran, Mexico, Cuba and some other countries have also announced support for Maduro.
According to Ibrahim Kalin, spokesman for Turkish President Recep Tayyip Erdogan, Turkey has given support to Nicolas Maduro and Ardoan called Maduro to tell him. Ardoआनan said, “Brother Maduro, stand strong, we are on your side”. Ibrahim Kalin shared this information on social media with the hashtag #WeAreMADURO.
In the 45th G7 Countries Summit, 2019 many countries were also discussed about this.
Break political relations with America
Venezuela has ended all diplomatic relations with the US after US President Donald Trump’s support to Khuan Guido. Nicolas Maduro gave American diplomats and embassy staff 72 hours to leave Venezuela. But, later US Home Minister Mike Pompeo said that the US would have diplomatic relations with Venezuela not through Maduro but through the government of Guido. He said, “America does not believe that former President Nicolas Maduro has the legal right to break political ties with America or to ban our diplomats.”
Global Financial Crisis
President Trump first publicly proposed the idea of ”a military option” for Venezuela in 2017, and he mentioned it again during an interview with reporters at the White House on Wednesday. Donald Trump said, “We are not considering any specific option right now, but all the options are before us.” US media say that Donald Trump may impose oil restrictions on Venezuela which will affect the country’s main source of income. In addition, the list of banned Venezuelan officials can also be increased.
Global Economic Crisis
This will affect Venezuela’s ability to repay billions of dollars taken from Russia and China. Last month in Moscow, Maduro and his Russian counterpart Vladimir Putin agreed to a $ 6 billion contract to export wheat to Venezuela and to Venezuela’s oil and mining fields.
Venezuela has been a major importer of military equipment from Russia to fighter jets to tanks during its prosperity days. Shortly after this meeting in Moscow, Russia sent two of its Tu-160 ‘White Swan’ bomber planes with nuclear weapons capability to Venezuela’s capital, Caracas. It is being told that these aircraft are going to practice with the Venezuelan army. Miriam Lanskoy, senior director for Russia and Eurasia at the National Endowment for Democracy, told Time magazine that sending the ‘White Swan’ to Caracas shows that Russia can still show the strength of its military in the West.
Asian Financial Crisis
In Venezuela, a direct confrontation between the US and Russia could be averted due to the role of regional opponents during this crisis. The BBC’s Vladimir Hernandez said that the support being received at the regional level by Khuan Guido indicates signs of sidelining the Bolivarian regime through a coordinated effort. He says, “This is an abrupt stop. It was extraordinary to see how all this was coordinated.
As soon as America came out, you would see that all these countries came out in a few seconds and minutes.” Maduro has been accusing the United States and Colombia of destabilizing Venezuela. He also held Colombia responsible for the drone attack on him last year. Speaking at the World Economic Forum in Switzerland, Colombian President Ivan Duque said that “Maduro should withdraw and Venezuela should be freed.”
Next financial crisis
When Duque was asked about the possibility of military intervention in Venezuela, he said, “We are not talking about military intervention. We are talking about diplomatic consent and the support of the Venezuelan people.” Brazilian Vice President General Hamilton Morao said his country would “not participate in any (military) intervention.” However, he said that if there is a need (after change) in the reconstruction of the country, then in the future they can give ‘financial help’.
Now we talked about India economic or financial crises
The current economic crisis is not like 1991
Union Finance Minister Pranab Mukherjee said that despite the sharp decline in the growth rate, the record fall in the value of the rupee and the high inflation rate, the Indian economy is not facing a crisis like 1991. He said on Monday that the government will soon be able to improve the situation. Union Finance Minister Pranab Mukherjee said that despite the sharp decline in the growth rate, the record falls in the value of the rupee and the high inflation rate.
The Indian economy is not facing a crisis like 1991. He said on Monday that the government will soon be able to improve the situation. After the meeting of the Congress Working Committee, the Finance Minister said that there is no reason to believe that we are going to face the situation like 1991 again. He said that during 1991, the country’s foreign exchange reserves were sufficient for only 17 days of imports while at present the foreign exchange reserves are sufficient for seven and a half months of imports. Mukherjee said that in other areas, the situation is not the same as in 1991.
Asian Financial Crisis
The Finance Minister’s statement comes at a time when the rupee has seen an unexpected fall in its value and the growth rate of the economy has been the lowest in nine years due to the poor performance of the manufacturing sector. According to the data released by the Central Statistical Office last week, the country’s growth rate for the quarter ended March 31 was 5.3 per cent, which is the lowest in the last nine years.
In this way, the growth rate during the financial year 2011-12 was 6.5 per cent, while it was 6.7 per cent in 2008-09 at the time of the global economic crisis. Mukherjee said that he hoped that the state of the economy would improve in the current financial year. He said that it is not right that we are not able to improve the conditions. We will come forward to improve the situation.
India twenty-five years after the economic crisis
This is a feature that can change contemporary history. Often long-term prejudicial praise of governance rather than the quality of leadership is sung. Contemporary Indian writing on India’s economic growth has been much less impartial to former Prime Minister Chandrasekhar.
Next Financial Crisis
January 2016 is a milestone in Indian history. It has been 25 years since the License Raj transformed the free market economy. January is also significant from another point of view — it was in this month that the first step was taken to move away from the blurred romanticism of the Cold War and from nonalignment to enlightened pragmatism in foreign relations. And this strategic change was due to the evergreen young Turks, the fierce socialists and the extremely blunt Chandrasekhar.
Global Economic Crisis
It would be relevant to revisit the events of January 1991 to appreciate this change. The financial crisis did not hidden from anyone. In December 1989, the then Prime Minister Vishwanath Pratap Singh declared the treasury to be empty before the world. When Chandrasekhar took over in November 1990, India’s economic condition was poor. India barely had a week-long import fund, overseas Indians were pulling their dollar, inflation was rising rapidly. The GDP rate was just one per cent. India’s troubleshooter – Yashwant Sinha, the then Reserve Bank Governor S. Venkataramanan, Dr C. Rangarajan, Gopi Arora and Deepak Nayyar were battling to increase resources.
1997 Asian financial crisis
India needed dollars for international payments, especially for the import of crude oil. Those sweeping the economy advised Chandra Shekhar to default (bankrupt). Chandrasekhar understood the value of respect for words. The morality of the Gangetic plains is determined by Raghukul, raghukul manner – let go of life but not promise.
Economic Crisis Handle
In a political economy where no government ever accepts the economic crisis, Chandrasekhar announced. He would seek relief from the International Monetary Fund (IMF), in order to fulfil his international commitments. It was not easy to accept the relief package. In the way, the IMF voted to approve relief, India
Chandrasekhar understood that India had two options – either to take advantage of the opportunity. And make strategic changes or face the infamy of bankruptcy. He understood before others that the world geopolitical equation had changed significantly after the fall of the Berlin Wall. And the disintegration of the Soviet Union. It will also change the global economy.
India’s financial crisis
Chandrasekhar asked the then Law and Commerce Minister Subramanian Swamy to use his contacts. On January 4, Swamy took advantage of this and ensured American support to India in the IMF. Chandrasekhar not only allowed American warplanes to take fuel into India but also condemned the attack on Israel, calling for Iraq to leave Kuwait.
On 18 January 1991, a special meeting of the IMF took place. It was then three o’clock in Washington. Indian Representative Gopi K. Arora faced questions related to the Indian economy of over 30 delegates and spoke of good intentions. As per Indian time, the first instalment of the relief package was approving at three in the morning. With this relief, India had to give another promise, that it would end the license raj and liberalize the economy.
Asian Economical Finance Crisis
In this one month, India broke two pledges – trust and non-alignment in the government economy. Both were pledges of Congress rule. Recall that Chandrasekhar’s government, with only 52 MPs, was dependent on the support of the Congress. Yet it challenged the traditional policy of the Congress on economic policy and foreign relations. It is also worth noting that this promise of change came under the rule of Chandrashekhar, an ardent socialist. Who led the struggle for nationalization of banks in the 1960s.
Subsequent governments introduced reforms, which were essentially crisis-driven — for strategic gains and necessary relief. It is true that BR Shenoy in the sixties, TN Srinivasan and Jagdish Bhagwati in the seventies to Vijay Kelkar, Montek Singh Ahluwalia and Rajiv Kumar in the eighties advocated the abolition of government control. But change requires crisis and courageous leadership like Chandrasekhar.
Global Financial Crisis 2008
It is instructive to mention this in January 2016. As almost half of the country’s population was not born in 1991. They would hardly have known that India was ever stuck in government queues. The country was in an unprecedented crisis on the verge of bankruptcy. If history is not to be repeated, the decisive political leadership of the time of crisis must be remembered. But the tragedy is that all the writings of contemporary India related to a free economy. And foreign relations do not give proper credit to Chandrasekhar for his intelligence and political courage.
Wikipedia has given a full report about Financial Crises.
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