by Subhadeep Dasgupta

Created on: February 16, 2009   Last Updated: March 08, 2009

At the end of year 2008, the world was facing issues with global economy in turmoil, populated cities with growing unemployment levels, increasing dissatisfaction among the citizens for the infrastructure provided by the local governments and global terrorism. To add to that there were perennial problems like global warming, illiteracy, social harassment for women and children and racial abuse. I feel I have named few of the major problems which each country in the world is facing.

With the advent of the year 2009, these problems would not vanish with a stroke of magic wand, but would persist to further heights with each day. The global economy has not been at its best of performing abilities and with the major economic growth loss for bigger financially stable countries like United States, Great Britain and European Union; the challenges seems to loom dark in front of the developing Asian nations.

In the last decade, most of the Asian countries have opted for globalizing their economy and local market to foreign investors. China, India, South Korea, Malaysia Japan and Thailand have been major hubs for performing outsourced operations and availability of cheap labor to these investors. This has led to a shift in the economic paradigm with percentage of jobs been slashed from their respective countries and being invested on the cheap manpower of these nations. These countries have also shown a positive and a gradual increase in their yearly GDP and growth rate. Being the emerging economic powerhouses, Asian consumers have become more susceptible to foreign goods, insurances and better lifestyles. The government of these nations has also tried to invest more on infrastructure and economic benefits to enhance more foreign investments.

But, with the start of the economic backlash in the mid of 2008, the investments from major investors have started to dry out and companies are opting out of importing the services of these countries. This has led to weakening the economic stability of the Asian markets, leading to major revisions to the proposed projects implemented for the local markets of these countries. The other socio-economic reforms like education, health-care and employment opportunities are also getting affected because of this. The capital outflow and depressed equity prices have seen the local currencies being weakened. All these factors impose grave situational impacts on the Asian conservative societies where women and children are still being harassed

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