Magazine Contents
Login | Register 
 
The Indian Textile Journal - May 2009 Viewpoint
Do Not Retreat

At times of crisis, should economies open up or retreat? Most of the economies tend to clam up, but in the medium term, this could spell disaster. Economies that are more open will be better placed to stage a faster and stronger recovery once the global crisis comes to an end. Only national stimulus packages that many countries such as the United States have put in place alone cannot help bring about a solution. The world is now confronted with the worst economic crisis in generations -- a crisis which threatens to undo the economic development achieved by many countries and to erode people's faith in an open international trading system. Trade has been a major casualty of this crisis, with WTO economists foreseeing a decline this year of nearly 10% in volume terms, its worst result since the end of the Second World War. The fear that has stemmed out of this situation is that trade openness has made economies more vulnerable to the crisis. But truly, trade cannot be the cause of the collapse in demand. This is only the result of the simultaneous reduction in aggregate demand across all major world economies. In addition, trade finance, which lubricates the wheels of international trade, is evaporating, thereby contributing to the friction.

This exponential decline in demand and its fears have made some countries hike tariffs, enact new non-tariff measures, and launch more anti-dumping actions. Some of the measures that have been taken up to stimulate economies contain provisions that favour domestic goods and services at the expense of imports. Though these measures fall within the ambit of WTO rules, they have had some adverse effects. So, the only solution is to open markets further, and not to retreat, though opening markets may pose a risk of greater volatility to many countries. More open trade is essential. A surge in protectionism should be prevented at all costs.

view The Indian Textile Journal April 2009 Contents view The Indian Textile Journal Most Recent Issues
ViewpointFeaturesFeatures
MMF Front Looks Up
Glad tidings have come from India's man-made fibre (MMF) export front, after seven consecutive quarters of decline in its growth. MMF textile exports for the 9-month period, April 2013 to December 2013 touched US $4.2 billion against US $3.8 billion. One of
Cotton yarn: Quality depends on mixing strategy
A systematic mixing plan by maintaining the lowest possible variation in cotton quality parameters ensures trouble-free yarn production with consistent yarn quality, affirms Sunil Kumar Sharma. In a
Airbag: Life saving textiles
The airbag fabric may be coated to increase the strength of the fabric so that the fabric is reinforced, and by increasing the strength of the fabric, breakage of the airbag can be minimised, assert R Senthil Kumar and S Sundaresan
full viewpoint... more... more...
Table of Contents Most Recent Issues Write to Editor
Subscribe to ITJ | Write to the Editor | Rate Card | ITJ Ads | Tell A Friend | About Us | Contact Us  | Login | Register  | Home
Associated Portals:  | www.ipfonline.com | www.automotiveproductsfinder.com
IPFonline Limited, 2nd Floor, Shafika Building, 17/7 Kodambakkam High Road, Nungambakkam, Chennai - 600 034.
Tel: +91 44 42991234 (30 Lines). Fax: +91 44 42108441. Email: admin@ipfonline.com