When the clock strikes midnight on December 31st, 2008 in the Republic of Kiribati 2009 will officially begin. Kiribati, a small island nation located in the Pacific Ocean, has the distinction of being the first country where New Year occurs. From there, massive celebrations, replete with exploding fireworks and popping champagne, will occur from Sydney to New York to London. In the Philippines we usher in the New Year with the Media Noche, a feast at midnight to symbolize a prosperous New Year. We also join in the rest of the world with launching fireworks, setting off firecrackers, banging on pots, and shooting guns to welcome the New Year and drive away any residual bad spirits from the previous year. With how 2008 has gone, we all may need to be a little bit louder than usual to drive away the lingering negative energy and bad spirits of the year.
2008 has been one of the most tumultuous years on record. The world has become mired in a global depression, the likes of which has not been seen since the Great Depression. There is even talk that when it is all said and done, globally this financial crisis may be the worse in history. Literally, no place on the planet is untouched by this problem: Iceland was forced to declare bankruptcy this year. Industries that have withstood the test of time are faltering; century old banks have closed and US automotive firms are on the brink of bankruptcy. This year was the worst on record for Asian stock markets: Japan’s economy is projected to shrink an annualized 12% this quarter, the worst since 1974. The United States economy has lost close to 1.5 million jobs this year alone. The global economic picture for 2009 looks bleak.
The economic crisis is not the only global issue we are facing. Lost in the turmoil of crashing financial markets is the ever-present concern of climate change. With worsening economies countries may find themselves further incapable of handling the effects of natural disasters. In 2008, losses from natural disasters rose to the third highest level in history. According to a report by Munich Re, the world’s largest reinsurer, global losses from natural catastrophe was $200 billion; 50% higher than 2007. Human loss of life numbered over 220,000. In the Philippines, losses from natural disasters was one of the highest recorded.
Reports indicate that the financial crisis may still worsen a bit, before improving. It is likely the Philippines still has not felt the full effect of the crisis; our economy relies heavily on the United States. Of great concern as well is the effect that climate change will continue to have on our country. This year we already had a rice crisis, driven by demand and poor weather. We hope that our government is taking steps to address the Philippines’ economic and environmental concerns.
The New Year that faces us is one of the most uncertain globally in history; outstripped only by the World Wars and the height of the Cold War in the 20th century. However, we still look with optimism to the future. Historically, every period of uncertainty and turmoil has been followed by a time of great innovation and expansion. The saying, Necessity is the mother of invention has never been more appropriate than now. A recent issue of Newsweek (November 3, 2008) touted an agenda of innovations focused on energy independence as the solution for the economic crisis. World leaders must keep both issues firmly in mind when devising policy over the next year. The economic crisis will end someday and we are certain that the world will continue to address the issue of climate change. Despite all of the issues and uncertainties, we wish everyone a happy and prosperous New Year.