End of Industrialization in West and Weak Natural Resource base

The present economic crisis in the west looks like failure of market to move ahead without persistent support of the state. The North block countries including US, Canada and Europe faces severe resource crunch owning to high consumption and low availability of natural resources like fossil fuel. The desire of the west to dominate the world economy slows down as the developing countries like, China, India, Brazil, Iran and Countries South Asia emerge to utilize the world resources. No more the fight to capture the resources has done severe damage to industrialization as it has happened in 1980s to late 1990s. The disturbances in middle east including Afghanistan and Iraq poses the serious danger to the stability of north blocks resource utilization.

The paced industrial revolution led by the European nations in early 17th Century till 1960s have recently lost ground to recover owning to little access to resources of the developing or the least developed nations. While the these two group of nations are busy in utilizing the resources for their own consumption and trade or they are prone to civil wars disturbing the supply of the raw and finished material to the markets in developed nations.

The crisis riddled with controlled market economies of Europe and America which in late 1980s sought to liberalize the economies of the world to have better access to the resources and treating others as potential markets. The economic power of the worlds leading countries would hardly sustain for next two decade given the growth enjoyed by the countries in the Indian Continent and South East Asia. When the nations in the North decided to give up manufacturing and rely on the service based economies cities would tend to have depressive effect on the national economies. Recently cities in the west hardly support the manufacturing pool in US economies, its trade and commerce which so far eluded the employment downfall is now facing serious threat from the outsourcing. They need to diversify and strengthen the production in order to bail out the cities.

Series of the bailout packages for the industries are utilized to strengthen the units already ineffective to sustain beyond the desired period before government treasurership bows out. The going back to people centric industrial model is inevitable to resist given the high unemployment in the developed nations. The demographic transition of the nations in economic crisis from high proportion of aged and low young working group leaves the production line high and dry relying totally on the capital investments. This would have poor distribution effect and increased debt crises in the western nations.

World would not be in the position to bail out the nations and would be mute spectator in case threat of war is imposed by those who would like to sustain economy at any cost. Till they go back to the starting point from it all begun North cannot expect any concession from the South.