'Five years & global economic order may change'

'Five years & global economic order may change'

TNN | Feb 4, 2012, 09.31PM IST



VARANASI: Get ready to face a long economic recession spanning about five years and it may change the global economic order, says YS Thakur, professor and head, Faculty of Management Studies (FMS), Dr Hari Singh Gaur Central University, Sagar (MP).

He was talking to TOI on the inaugural day of the two-day international workshop on 'Post Economic Meltdown Era - Challenges and Strategies,' jointly organised by FMS, Banaras Hindu University, in association with AMDISA, SAARC and Alliance University on Saturday.

Saying that recent global economic crisis had already left its tremors to shake the powerful economies of the world, the senior professor of Sagar Universiy emphasised that the powerful economies were still trying to overcome the repercussions alongside the economic and social damage already incurred. "The Eurozone crisis is likely to cast its shadows in India and China sooner or later. In an event of post-economic turmoil and meltdown, it is becoming important to redress the after-effects especially in developing economies like ours," he added.

India made a great recovery from global recession four years ago but the Eurozone crisis is threatening to lengthen the recession phase that could last up to five years in the country. Not only our exports may decline but the impact could be largely felt in sectors like tourism and hospitality that could be badly hit. The overseas job opportunities could shrink and foreign direct investment may also fall, enough to shake the share market. The immediate impact of the economic meltdown could witness reduced job opportunities but at the same time it might lead to reverse brain drain as talents from the country might be inclined to seek opportunities within the country, added the senior professor of FMS on the occasion.

Earlier, inaugurating the two-day workshop, RK Singh, chairman and managing director, Bharat Petroleum Corporation Ltd (BPCL) said "petro-dollar, which is governing the global economics, may witness fluctuations due to global economic crisis." He also urged the policy makes to pay attention towards agriculture sector to counter global recession.

Guest of Honour Prof Jeffery Alves, dean, Wilkes University, US said countries with solid economic foundation would be able to counter the global recession in a formidable way. He also highlighted the need for structural reform in the light of recent global economic crisis. Dean and head, FMS, BHU, Prof SK Singh stressed the need to come up with more realistic approach to counter global economic recession.