NEP Presentation

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Presented By:FALL BATCH 2011-13 (FC2)Himanshi BansalManu SharmaLeona LakraVenus GargJyoti BoraAbid Shah

National Economic Planning

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Firstly, Economic globalization has brought prosperity and development to many countries, but also financial crises to Asia, Latin America and Russia, and increasing poverty and marginalisation-Anna Lindh

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Financial Crisis Is not a Man-Made Catastrophe

What is Financial Crisis?

When a Financial Institute or Asset loss a large part of its value, called Financial Crisis.

Examples:-Recession & Currency Crisis etc. Other situations that are often called financial crises include stock market crashes and the bursting of other financial bubbles, currency crises, and sovereign defaults.

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Financial Crisis has a positive and negative sides and is resulted from the economic and political issues as well as from disasters. Crisis is a situation in which a decision has to be made in short time.

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Financial Crisis has a Positive and Negative sides

Positive Effects:  Positive effect is that since revenues from mineral exports are down, some countries might (just might) be more likely to start developing agriculture or manufacturing which create more jobs and produce something that can be used inside the country.

Negative Effects:  The recent global economic crisis, including the US financial crisis and the debt problems of some EU countries, seriously impacted the world economy, especially developing economies.

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Boom Recession

Depression Recovery

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Trade Cycle

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Growth

GDP is risingUnemployment is fallingBusiness are experiencing rising profits‘Feel good’ factor among the people as their incomes are rising.

Boom Results from too much spending.Economy experiences rapid inflationFactors of production become expensive

Recession Results from too little spending.GDP is fallingDemand in the economy will fall leading to closure of firms and unemployment

Slump High level of unemployment.Business will rapidly close down creating serious consequences for the economy.

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Who is affected by Financial Crisis?

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In factEveryone

Investors

EmployeesBanks

Companies and

Shopping Malls

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Most affected areas Least affected areas

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This world map shows a list of countries that are least affected by global recession or the ongoing financial crisis

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Effects of Financial Crisis

Uncontrollable Agents:a) Global effect ( effect of crisis

from one country to other)b) Due to Political Instability.

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Adam Smith's Theory of Invisible Hand

He states that markets achieve efficiency by balancing production and demand of goods in a way that everyone ends up making the best of what is possible. 

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An Inquiry into the Nature and Causes of the Wealth of Nations by Adam Smith

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In real life, markets may not be perfectly efficient, but that does not neglect the importance of Adam Smith's Invisible Hand theory. Markets can often fail because of many different factors, but in spite of them, they still provide the best option we have for achieving an efficient system of human economic activity.

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There are many causes that could create a global crisis, from food shortages to financial shortfalls to the effects of global warming and climate change. But the biggest concern is what effect a crisis could have on humanity. When a crisis occurs, it is usually followed by some type of suffering that is endured by humanity. Some of the types of suffering include starvation, dehydration, illness, disease, dislocation, migration, and even death.

Global effect ( effect of crisis from one country to other)

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How Crisis effect on Global

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Headquarter Vienna, AustriaOfficial Language English

Member states 12 in 2011

Leaders:President Rostam Ghasemi  Iranian

military officer and politician who is the current Minister of Petroleum since 3 August 2011

Secretary General Secretary General of  OPEC  since 2007.

Organization of the Petroleum Exporting Countries(OPEC)

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OPEC (Organization of Petroleum Exporting Countries) members are Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. Angola joined OPEC in January 2007. Ecuador was a member of OPEC from 1973-1992, and rejoined OPEC in November 2007. Gabon was a member from 1975-1994. Indonesia withdrew from OPEC in May 2008.

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Oil weapon played a major role politically and was even more significant economically.

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Is Inflation Good for Growth?

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Protest, Riots and Political Instability

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Increasing unemployment

Increasing food crisis

Financial

CrisisInflati

on

Political

Instability

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Conclusion

Evaluate the Situation

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Our future is in our hands

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