To start with, the present recession can be considered a classic example of what is known as the ‘butterfly effect’*, or ‘domino effect’**. Briefly saying, the origin of this crisis lies in the greed of realtors in
While there have been doomsday predictions every where equating the present crisis with the worst ones in the history, comparatively
The fall in the GDP growth rate and loss of jobs has not been as heavy as was initially feared, although the share market indices have since fallen steeply. In some cases, there have even been pretty good fresh investments and job-inductions.
But a rather least noticed fact is that in our country a very major part of population is in fact NOT involved with the investments in share markets, realty or other such financial activities, but is still largely dependent upon the informal trading at local level, say in the small time markets nearby the living places for daily needs- local fruit, vegetable or grocery shop, milk vendor, domestic and other personal services etc, due to lower earning and living standards, and partly because of a conservative approach towards money. These are market systems which are somewhat insulated from the large scale formal financial network of national level, which is affected harder by the global crisis. It is this second level informal social trading system which is still holding strong like a steel framework that keeps us going even in face of the worst global financial crisis.
[* Metaphorically, a butterfly fluttering its wing in one part of the world could possibly trigger a hurricane in another part of the world.
** One event triggers a spate of similar events that propagates like a wave going long distances.]
I wrote this for my college magazine :D