Dire warnings on effect of downturn
14 November 2008, 06:23
By Lesego Masemola
As economic turmoil takes centre stage in the world, experts believe it is time for leaders to unite and put petty politics aside and focus on the challenge at hand.
Dr Iraj Abedian, CEO of the Pan African Holdings, on Thursday said current trends suggest that if a global recession sets in, it will be a long and deep one, with huge social and political ramifications over the next decade.
Abedian was speaking at the University of Pretoria's Centennial convention, which discussed future economic trends.
He said when resources dwindled, there was a scramble for them, an element that could lead to war.
The root cause of the problems was simultaneous failure of markets and the state, causing the moral bankruptcy of people that ran the banks and the state, he said.
Abedian said although all regions of the world were adversely affected even if not to the same degree, no single country could deal with the problem alone.
He said a paradigm shift was needed from nationalistic to a global mindset. He said although South Africa had been spared from the first round of global financial problems, bad debt and banking systems were of concern, as were the volatility of the rand.
Clem Sunter, co-author of Mind Of A Fox, said he believes South Africa could rise above the economic problems. He was speaking on the topic: "Building tomorrow: most likely future scenarios".
Sunter said the country had pockets of expertise and should use these to create a better economic situation.
He said the country should strive to retain great leaders like Trevor Manuel and increase exports, expand tourism, focus on the World Cup and work on becoming a gateway for Africa.
As economic turmoil takes centre stage in the world, experts believe it is time for leaders to unite and put petty politics aside and focus on the challenge at hand.
Dr Iraj Abedian, CEO of the Pan African Holdings, on Thursday said current trends suggest that if a global recession sets in, it will be a long and deep one, with huge social and political ramifications over the next decade.
Abedian was speaking at the University of Pretoria's Centennial convention, which discussed future economic trends.
He said when resources dwindled, there was a scramble for them, an element that could lead to war.
The root cause of the problems was simultaneous failure of markets and the state, causing the moral bankruptcy of people that ran the banks and the state, he said.
Abedian said although all regions of the world were adversely affected even if not to the same degree, no single country could deal with the problem alone.
He said a paradigm shift was needed from nationalistic to a global mindset. He said although South Africa had been spared from the first round of global financial problems, bad debt and banking systems were of concern, as were the volatility of the rand.
Clem Sunter, co-author of Mind Of A Fox, said he believes South Africa could rise above the economic problems. He was speaking on the topic: "Building tomorrow: most likely future scenarios".
Sunter said the country had pockets of expertise and should use these to create a better economic situation.
He said the country should strive to retain great leaders like Trevor Manuel and increase exports, expand tourism, focus on the World Cup and work on becoming a gateway for Africa.
- This article was originally published on page 4 of The Pretoria News on November 14, 2008
Pretoria
