THE CRISIS OF DEMOCRACY

THE CRISIS OF DEMOCRACY

Authors: Petrisor MANDU
Liliana - Cristina NICOLAU

Publisher: LUX LIBRIS, 2009

The authors : PhD Professor and respectively university assistant at the Management and Economic Informatics, the Faculty of Economic Sciences of the University "Transilvania" in Brasov, are dividing their analysis in two chapters:

- Domestic factors;

- Foreign factors.

Chapter I has 28 subchapters, and chapter II has 14 subchapters, but I believe each of these 42 subchapters might be seen as a chapter in itself. The issues approached have been analyzed and explained in few but very objective words, and I think that is a tribute to the author's military formation.

The authors are concerned by the etymology of the word "crisis" from the Greek "krisis" through the Latin "crisin", "crisis" in the 16th century, but the conclusion is that wherever it appears, it produces panic and madness.

Today we speak about crisis manifested in most of the fields, so we have: world crisis, economic crisis, financial crisis, market crisis, authority crisis, unemployment crisis, geopolitical crisis, political crisis and so on.

The authors have a subchapter (28) called "Political crisis, the disease of democracy", and they see political crisis as being produced by the inefficient politician, as a response to his failures in the key positions of the state administration.

By analyzing the origins, the stages, the duration and the intensity of the current economic crisis, the authors believe that the origin of crisis should be sought within the weak conditions of the global economic flux, within the discordances between production and circulation of financial resources. The fight against terrorism, the wars of the USA and its allies in Iraq and Afghanistan have caused an economic slowdown of the world economy epicenter. The most efficient reaction method was thought to be pumping money into economy in order to reduce the financial shock on the economic agents, on the entire economy.

There were other causes, too: interests were diminished, restrictions were relaxed in granting loans, the obligatory foreign currency reserve was reduced, and so the volume and the circulation speed of money were increased and in 2007 some non-functional big investments turned into a system of financial risk, which hit the exchange markets in 2008.

The crisis got beyond the American frontiers; it became international and hit all states according to the exchanges and interdependencies existent between them.

The states in Eastern Europe were the most seriously affected, as they had been for so long isolated in ideology, politics and economy.

The authors are wondering whether the specialists in the basic fields of social life going to be able in the future to establish and manage the dynamic of crises and they plead for crisis management based on the economic thinking and actions of managers, leaders or experts with such professional training allowing them to get involved with a maximum efficacy in solving the crisis situations.

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