Posted on 17/01/09 in Economy
During the past few months we have witnessed the collapse of some of the most powerful banks in the world, a dramatic downturn in stock markets, the nationalization of US and European banking institutions and the pumping in of billions of euros by central banks.
The world is facing one of the most serious financial crises that could bring even more dangerous consequences for populations worldwide. The current crisis has impacts in several fields whose effects are already being felt and democracy is one of them. What is the relationship between the financial crisis and democracy? How can democracy be affected by this crisis? Democracy is based on freedom and equality of all citizens, by means of which they can make important policy decisions. Democracy is a vital need for humans and without it the development of mankind is not possible.
It is also synonymous with freedom and solidarity. The popular sovereignty, equality policy, the popular consultation are inseparable requirements for achieving the democratic system. This crisis is opposed to democracy, as well as to its assumptions and values. An unstable international crisis framework may boost new dangers for the people beyond the economic sphere. The most serious economic recessions may affect democracy through social instability, may reach several countries worldwide that could face the risk of instability.
This instability can result in dangerous social and political phenomena such as the resignation, social tensions, the extremist forces and movements against immigration, racist and xenophobic, anti-democratic and authoritarian practices. Thus, democracy is at risk and difficult to enforce. It is the responsibility of society to create conditions for citizens to realise their ambitions, talents, to choose their lives and to participate. With this crisis, this is not possible. In times of crisis, the nation states have less and less power to respond to the major social, ecological and democratic challenges which one faces today.
The global financial crisis will have a broad impact on those who are already the most vulnerable groups in society, thereby increasing inequalities. In some states where democracy is weakly consolidated or is a little fragile regime, there may be a setback due to economic or financial turbulence. That is why the global crisis in some parts of the world, depending on its depth and duration and also of financial and governmental responses to capitalism, may appear as a threat to democracy.
The current situation affects the democracy of people for It does not allow a life with rights, in democracy. Unemployment figures are constantly increasing, conditions become scarce and destruction escalates. The capitalist system does not work with the people and for the people but rather uses the people for its own benefit. This is not democracy. The European Young Greens have to be together against the economic, political and social dangers of this crisis. It is our duty to act so as to prevent the deepening of this crisis and new crisis from destroying the planet.
We must demand profound social and economic transformations. This is the necessary response to the crisis of the system. We defend a sustainable world that guarantees a just society, where everyone can live in democracy, as equals and enjoying the same rights. We need basic social guarantees for the people affected by the crisis. The European Young Greens demand better living conditions, democracy, cooperation and peace among peoples.
We defend social justice, a prosperous and sustainable economy and society. We will stand up against any threat to the rights which society conquered over the past few decades.
This is a good time to show that this crisis demonstrates the oppressive and exploitative nature of capitalism. The financial crises such as the one that currently makes the world tremble, expresses the structural crisis of the capitalist system. The solution is to look at the roots of the problem. The crisis comes from within the system and only a change in the system can lead to a sustainable economy and a sustainable society.
The world has been subjected to the economicist logic that is unable to ensure people’s needs. Given all this, we can see that the capitalist economic model, based on unlimited growth, is an unsustainable model that is stifling and limiting the democracy.