The Recipe for Resolving the Crisis
The global ties among countries is a done deal, a result of natural evolution that is still continuing. In fact, the ties are only strengthening, and the crisis in 2008 clearly exposed that single network in which the fates of all countries are interlinked.
In 2008, the network tried to revive itself through local treatment of the most conspicuous symptoms of the crisis. Moreover, it tried to do it in unprecedented proportions.
However, the international system is following economic, social, and political paradigms that were fashioned after WWII and are no longer suitable for today’s global network of economic and social ties. Now, a binding mutual responsibility has been formed among all the countries, and the discrepancy between the nature of the economic global system—and the anachronistic modus operandi that reflect values of economic independence at all cost, maximizing profits and gains, and unrestrained competition—is at the heart of the global crisis.
Decision-makers and economists the world over failed to adopt a broader perspective on the global reality, by which the connections among countries obligate them to develop ties of mutual guarantee among them, if not willingly, then because the facts of life demand it. In the global-integral world of connections of trade, economy, banking, and finance, a country that is concerned with only its own economy, irrespective of the rest of the countries, will fail utterly, damaging the entire international system, which strives for balance, harmony, and collaboration, as it should be when its parts are all interdependent. Even if the economy of such a rogue country should strive, it will inevitably be affected by the crises in weaker economies, as is the case with Germany in the 2011 Eurozone debt crisis.
Thus, devising a solution requires a comprehensive, global move, with cooperation and mutual guarantee among the countries. This will manifest in mutual consideration, care, synergy, willingness to make concessions, and unification of fiscal, monetary, and regulatory mechanisms.
Not only are ties of mutual guarantee necessary, but a country that will not follow that principle, and will not consider the needs of the rest of the countries, will actually be hurting itself. Stronger countries must assist the international system by using international rescue and aid funds.
The conceptual change of values will motivate restructuring of the international economy, where one country helps another, or the entire system, because all countries understand that if they do not, they will harm themselves due to the tight interrelations in the system.
At the same time there must be education and provision of information about the global, connected reality into which the international system has evolved. This will gradually change the worldview of the world population and its decision-makers. As a result, the new nature of the international economy will not be perceived as a necessary evil, but as a new idea that holds within it vast economic and social potential for the entire world.
Moreover, we must understand that the global economy is a reflection of international relations. For this reason, the change that is required first and foremost is a conceptual change of the relations among them. This would require constructing ties of mutual guarantee among countries based on the needs of each one, along with the needs of the entire international system. This will manifest in expansive collaboration and solidarity among countries.
As said above, the economy reflects the social ties among individuals and nations. Therefore, changing the relations on the international level, and adapting the ties to the global and interdependent nature of the global economic system will yield the anticipated change from a threatening global crisis into a balanced and sustainable international economy. This will be radically different from the one we know today. The change of values is necessary for the improvement of both international and interpersonal relations.
To summarize, economics is a science that reflects the interrelations among people. The new economy, which is suited to the global and integral world, is radically different from the one we have today.
The economic crisis is a threat to all of us. All attempts to cope with it using traditional economic means have failed. The only hope of achieving economic balance is by implementing mutual guarantee. The global crisis results from the chasm between the competitive and individualistic nature of the current system, and the one that must exist in a global and integral system. That crisis will also accelerate the transformation.
Leading economists are already beginning to understand that the predisposition to hold on to the existing system even when it is failing is not serving our interests. Instead, we must focus on building a good, harmonious, and solid reality.
It is important to note that a pathway toward a balanced, harmonious, and steady economy does not imply revolution. Rather, it implies deliberation, transparency of information and decision-making processes, and clearer explanations and education about the laws of our new global-integral world.