it seems that the crisis of the world-economy does not stop. the european union is forced to support greece with a huge amount of money. one of the reason seems to be, as said by officials from europe, to prevent a domino-effect on other countries like spain, portugal or italy, which obviously also face serious economic problems. greece with 177 billions of debt's seems to be manageable, italy with 1.077 billions for sure not. the claim of
greece to german banks is 22 bill. euros, almost the amount the german, "kfw-bank" which is under the ownership of the federal republic of germany and the federal states in germany, will allocate as a loan to greece. if greece fails its financial obligations to return the money, the german people have to raise this amount with taxes.
greece to german banks is 22 bill. euros, almost the amount the german, "kfw-bank" which is under the ownership of the federal republic of germany and the federal states in germany, will allocate as a loan to greece. if greece fails its financial obligations to return the money, the german people have to raise this amount with taxes.
this scenario shows very clear about the situation of most western economies and states. very obviously, the state, as a political institution, lost its power to act, it is compelled to act. it seems, the state is not able anymore to compare with private, heavyweight, economical institutions. it is only able to administer the situation which is dictated by those which are not related directly to the political system, i.e. hedge fonds, speculative loan-insurances or rating agencies. the western world should understand, that the state as such does not exist anymore in a way it existed in the past. at least the political power is redeemed by economical strategies from non-political institutions.
the system of the UAE seems to be much more stable. the country has a political power which is leading the country, without suppressing economical developments. without any doubt, economical institutions are very strong in the UAE, but, so far, they are not able to challenge the state in a way, that the state has to give up its supremacy in decision-making processes. the decisions are generally made based on the future of a society, which, with its multicultural approach, will shape a globalized country with the first globalized cities. its interesting to see, that the basics of globalization. i.e. the deregulation of the world trade and its power within, is working in the UAE very strong, but this basis is in this country not suitable to replace the power of the political system. even the UAE are maybe the most interesting area when it comes to globalization, it can not challenge the politics. in the western world it did not just challenge it, it took the lead. it seems that globalization only works when it is embedded into and regulated by, a regional, political, system. the town planner and social activist Patrick Geddes phrased this as "think global, act local".
for that reason, the UAE and its cities, can act as an example of globalized, social developments as a forerunner shown, that, in the era of globalization, a state is not being susceptible to blackmail by economical global players, without a negative effect on economical developments. for the development of cities in the UAE, this is a very important point. the development can rely on governmental strategies, which are long-term oriented. this is one of the main-facts which will lead to a UAE keeping the pace in the region, even it is hardly effected by the international crisis.
