CREDIT CRUNCH

The Global Credit Crunch has been a Result of the Failure of Global Governance

Abstract

The paper aims to emphasize on the relation of the global credit crunch and failure of global governance. Moreover, the concept of global credit crunch is analyzed critically. Furthermore, it analyzes the international relations in various dimensions i.e. the connection between global governance with the international security, the affect of the financial crisis on global basis as well as the need for improved global governance architecture as a solution for stability and sustainability.

Table of Contents

The Global Credit Crunch has been a Result of the Failure of Global Governance3

Introduction3

Background4

Discussion & Analysis5

Global Credit Crunch - The Concept7

Impacts of the Credit Crunch10

Global Governance - Solution for Stability & Sustainability13

Recommendations & Suggestions15

Conclusion16

The Global Credit Crunch has been a Result of the Failure of Global Governance

Introduction

Globalization is continuously changing the trends of societies. In today's environment, it has become increasingly important for Governments to consider the role of Global Governance. The times of traditional governance are now behind us.

We need to have a globalized approach in governance. Many Governments are now focusing their attention on implementing the concept of global governance which asks for a unified approach towards things. Global Governance takes a long term approach and thus Governments implementing Global Governance have to consider all the minute details in Global Governance.

State theory has largely been influencing the field of political science.

Earlier not much attention was being paid to the state theory but gradually the state theory got special mention in the field of political science.

There have been many problems associated with states in different fields. Many states have been known to become victims of crisis due to various factors. Many times states are doomed because of ignorance to external factors as well as internal factors.

The theme of globalization also has contributed greatly towards the field of political science. It states that nations have lost control over major aspects of the country such as economies, currencies, territorial boundaries.

Globalization has completely changed the way states operate. States which do not consider the globalization aspect are bound to falter. In order to govern effectively and reach their goals, it's necessary for States to consider the importance of globalization. Many governments have failed to prosper because of their ignorance to Globalization aspect.

Global Governance needs to consider the aspect of Globalization. There is a rapid shift of power from being a nation state to now being a global state. The functioning of a global state is completely different from a single state.

Global governance requires taking a macro approach toward governing. In order to govern effectively, all the practices which should be employed by Global governance should be incorporated.

Background

The roles of States have been increasing rapidly with the speedy rise of Globalization. Globalization involves rapidly transforming the way governments used to govern. Earlier there used to be a traditional approach to governing.

With the growth of globalization, it is increasingly important for Governments to understand the intricacies ...