Editorial

Dire

The World Bank says the global economy will shrink this year, the first time since World War II, and that global trade will contract for the first time since 1982, by percentages as big as those observed in the years following the Great Depression.

Such dire projections, however vague?the actual numbers will be released in the next few weeks?were enough to spook markets in Asia and Europe at the beginning of the week?s trading. And why not? Even the most pessimistic of economists have been saying a slim expansion was in order.

Hard times notwithstanding, the bank appeals to wealthy nations to create a ?vulnerability fund,? a portion of their own stimulus packages for assisting poorer nations. ?The global crisis needs a global solution,? the Bank?s president, Robert Zoellick, says as he makes a pitch for more investments in developing countries to avoid social and political unrest.

We wonder whether there is room for altruism in survival, when even the most prosperous of countries now find they must fend for themselves above all else.

The suggestion may also be too sweeping for numerous countries affected differently by the downturn. For instance, here in Asia, export-driven economies now face a bigger threat than those with other means to stay afloat. The Philippines, on the other hand, is said to be on safer ground because of the earnings of migrant workers and the perks of outsourcing activities.

Nobody is immune from the crisis; even the most conservative of economies will be confronted with external shocks. Still, a country?s ability to weather these extraneous threats relies on its internal strengths.

Transparency is one such strength. Today the nation is riveted anew at allegations unfolding in the Senate hearings on the Legacy Group of Companies. There were other names in other circumstances, but the culture is the same. The worst part is that these events, common and audacious as they are, are seen as a given, a way of life. The lack of outrage then encourages the cycle. Then it would not matter how much money is made available in the system. The benefits would always be less than intended.

Now that?s a dire situation that undermines even the most optimistic of forecasts.