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    I don't think absolute free trade is necessarily always the best thing for less developing countries. A little protectionsim is needed for newer industries to develop.
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    (Original post by vienna95)
    i agree to a certain extent. i dont advocate that aid be withdrawn altogether, but i believe there has to be a great deal of accountability on where aid is going, this is not the case, especially when bodies such as the IMF and UN are involved. my argument is in reducing aid and promoting self-determination as you seem to advocate. my question is, how could withdrawing aid toward an African nation, cause a global recession?
    A global recession is when global economic growth falls below 2.25%, according to many economists and backed by the IMF - that's as close to an accepted definition as you can get. Also a global recession doesn't necessarily mean every nation on Earth is in recession, just that there is an sustained fall in worldwide output to influence the economic markets.

    A recession would be characterised by several things; a fall in aggregate demand, higher unemployment, weaker inflationary pressure, fall in capital investment, and less imports and exports. Most of these things are predicted to happen to Africa, Asia, South America and possible regions of Eastern Europe if foreign aid is withdrawn. That isn't to say it will bring upon a global recession, but it will certainly create an environment and economic climate were if a major recession did come along, the last scare being in 2001, severe damage to the global economy may be done.

    To say that the withdrawal of foreign aid will benifit us, as the BNP have said, is misinformed, and very very wrong.
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    (Original post by BazTheMoney)
    A global recession is when global economic growth falls below 2.25%, according to many economists and backed by the IMF - that's as close to an accepted definition as you can get. Also a global recession doesn't necessarily mean every nation on Earth is in recession, just that there is an sustained fall in worldwide output to influence the economic markets.

    A recession would be characterised by several things; a fall in aggregate demand, higher unemployment, weaker inflationary pressure, fall in capital investment, and less imports and exports. Most of these things are predicted to happen to Africa, Asia, South America and possible regions of Eastern Europe if foreign aid is withdrawn. That isn't to say it will bring upon a global recession, but it will certainly create an environment and economic climate were if a major recession did come along, the last scare being in 2001, severe damage to the global economy may be done.

    To say that the withdrawal of foreign aid will benifit us, as the BNP have said, is misinformed, and very very wrong.
    well, i didnt agree with the BNP policy, but as you may be versed in the economic effects, im fully aware of the political situation surrounding aid payments towards "less than savoury" states.

    so,the definition of a global recession differs from what youd consider a logical one for state-based economies?

    i still believe, however, that free trade should be promoted ahead of aid. places in Eastern Europe such as Armenia suffer now from the subsidisation during the Soviet years and free trade would, indeed hurt them if applied straight away. in their case, financial aid is required to restore their ailing agricultural sector. there is a difference between bank-rolling a government, such as the EU toward the Palestinian Authority, and allowing minimal financial support to key production sectors.
 
 
 
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