Why do national and global scale events such as the Great Recession have different effects in different neighborhoods and places? Why does the unevenness and inequality tend to persist along lines of race and income?
Why do national and global scale events such as the Great Recession have different effects in
different neighborhoods and places? Why does the unevenness and inequality tend to persist along
lines of race and income?
Great Recession was observed in national economies globally. The timing and scale of recession varied from one country to another.
It was not observed equally around the world. Less impact was on recently developed economies (example: India, China) and severe impact was seen in developed economies like Europe , South America etc. The unaffected countries from such shock were highly developed countries like Australia. The reason for this is positive economic development in highly developed countries. Bank lending was low, the market for mortgage was small, not being over dependent on one form of export sector, internal markets were large, continuous FDI due to low labor costs, etc. All these are few reasons for different effects on different neighborhoods. Example: Africa was not affected as there was lack of integration in the world market. Countries which experienced crises before were better prepared. Many countries had stringent banking laws. Financial markets were closely regulated. All these factors distinguished countries from experiencing the same things due to global scale events.
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