During the past several years many global events have followed closely one after
another. First the rise in agricultural commodity prices seriously impaired food security
in many nations. Second the increase in energy prices added further difficulties to the
poorer nations. Then came the floods and droughts in many parts of the world – part of
unfolding saga of global climate change - that once again adversely affected the poorer
nations. The most recent crisis has been the global financial crises whose effects are
still being felt in many parts of the world including the developed countries.
“ For the first time since World War II, the global economy is expected to shrink in 2009
by 1.4 percent Most OECD countries have been hit very hard, although recent reports
suggest that many could see their economies turn around sooner rather than later. For
the LDCs, the impacts will vary substantially across countries based on differences in
the degree of openness and the type of openness “(Headey et al 2009).
These changes have shaken fairly strong faiths in the dominant role of the markets, the
prevailing models of development and management. (Haddad 2010). It has exposed
the extent of fraudulent business practices that literally swindle ordinary people’s hard
earned. Market fundamentalism argues Stiglitz (pointed out in Sanchez 2009) has
become just like any other ideological rigidity and the costs of its excesses are only too
obvious around the world in poverty, hunger, malnutrition and other unhealthy signs.
Sanchez ( 2009 ) goes even a step further and points out that the dominant ethics of
market paradigm governing liberal approach that has given rise to this ever widening
dualism of the haves and have nots ( where 500 richest have incomes which is greater
than the combined wealth of 416 million people ) does not see anything disturbing in
this situation. It is just pure bad luck for those who are stuck in the quagmire of poverty.
They were unable to take advantage of the laws of the market.