Boston looting: evidence of a recessive global economy

Columnist: Daniel, Uzoigwe Chimezie

Americans looting marathon gear after Boston attack

America is the leading World economy and events in that God's own state influence the rest of the World. In technology, business, tourism and hospitality, and virtually every other thing, America stands out as the World capital. Though, America flourishes, she has continued to face some daunting challenges as a state - more like a 'big man, big trouble'. Insecurity posed by the threat of terrorism has remained America's greatest challenge. This has made America to be seen as the greatest enemy of and to terrorism.

In recent times, the Boston bombing incident is only second to the 9/11 twin tower attack. The incident has opened up old wounds. It is a reminder to the US that the fight against the evils of terrorism is far from over.  Although 'the battle of Boston' is over with America having the last laugh, she understands that it is a continuous war. The fact that America was able to track down the two cowards in less than a week after the incident shows the defiance of the American nation and her determination for survival.

The media was awash with the level of sympathy American citizens displayed during the Boston attack with some civilians helping to rescue some victims at the scene of the incident. Americans have continued to offer assistance with many ready to accommodate those that were displaced. The Police too were also at their best and ‘risked’ everything.

Perhaps, what the media played down was the looting of the marathon gear that followed the incident. That Americans will be looting ‘looting’ the gear of the Boston Athletes amidst a national tragedy was shocking to many, but others were not surprised as it was an evidence of a World economy, that is still very much depressed.

Although, looting in chaotic situations is not new – Britons loot during riots and people looted shops in the wake of the Haiti quake, but they cannot be compared to looting amidst a terrorist attack, in God’s own state. One would not have been so much bothered if the looting was done in Somalia, Iraq or Pakistan.

The rare combination of sympathy on the one hand and gullibility on the other hand, displayed by Americans in the Boston bombing incident explains two things. The former explains that Americans are humane and sympathetic of other people’s cause just like the global majority. The latter just tells us that the global economy is still recessive.

The Americans that looted the gear are guilty but do not lack conscience – they do have conscience but they were pushed to the wall. By what? By an economy that is yet to fully recover from the aftermath of a financial cum economic meltdown despite several efforts at the national, regional and global levels to exit the crisis. When an economy is recessed, it reflects in both the pockets of the Poor and the Rich. However, the Poor are more severely affected because they are the ones that pick the crumbs. While the Rich can at least defend past living standards  as demonstrated by Simon Kuznet’s ‘ratchet effect’, the Poor, by no meanshave this privilege – their living standards go down the drain.

When the phrase ‘fiscal cliff’ starts trending in the US lexicon, then you should understand that all is not well with the economy. When President Obama is very serious about a deal to raise taxes and reduce social benefits, you would understand that the US economy is not in good shape.

At the global level, the instability of World markets is key pointer to a World economy that is still under the pangs of a recession. John Paulson just lost about $1 billion in the gold crash. Countries including the ‘rising’ China have been projected to grow at slower rates, and there is no hope that much of this growth would be inclusive. The prices of World commodities have continued to fluctuate to the detriment of oil-dependent economies like Nigeria. The Boston incident aside, the next most important evidence of a recessive world economy is the drama in the Europe. With Portugal, Greece, Italy and Cyprus already subsumed, no one knows to whom the bell would toll in the next breaking news. There is nothing to guarantee that some other economies in Europe are only but time bombs that may soon explode.

For Africa, it is difficult to differentiate between periods of booms and recessions as none of these periods have impacted the continent’s development objectives positively. For Africa, the issue at hand may not be really serious because the Continent (with its record of poor development outcomes amidst laudable growth performances) is indifferent to ‘booms and dooms’ in terms of development objectives. With only few exceptions, one can only explain Africa’s development experience by saying that the Continent has always been in a perpetual ‘recession’ which is neither responsive to positive shocks nor negative ones. The high level of corruption and rent-seeking and the phenomenon of resource curse plaguing Africa ensures that positive shocks are only but transient and are eventually translated into negative shocks in the long run to the detriment of the citizenry.

We cannot just laugh away the gloomy nature of the Global economy as evidenced in the Boston incident. Global leaders must make concerted efforts in this regard. We need to sit again and a chart a course for full recovery in order to restore global prosperity.

Daniel, Uzoigwe Chimezie is an Author and Social Commentator. A student at the department of Economics and Statistics, University of Benin, Benin-City, Edo State Nigeria and a graduand of the International Youth Leadership Academy(IYLA), of the International Centre for Education and Youth Development.International Centre for Education and Youth Development, Los Angeles, California, USA.