Recent Recession

China is known for its growing economy at the cost of offering cheap labor sources for duplicating the products. China is widely known as the photocopy machine of the world, experts in duplicating the known products. In order to meet the massive requirements pouring in from the every corner of the world, China has millions of manufacturing units producing various types or original and duplicate goods throughout the day. Besides duplicating, many companies are assigning them the production work of their desired products. The Chinese goods are known for their cheap quality and prices and most people avoid it due to the malpractice in manufacturing. They have produced substitute items for every productive material and they are widely using those elements in manufacturing cheap products. They also produce quality products under the strict specification of the principal. China is the largest populated place and due to the cheap labor standards there, many manufacturers have shifted that manufacturing units in china in order to take greater advantage of the easily available labor. China offers skilled and unskilled labor for every manufacturing unit. China largely depends upon the production contracts awarded from the western countries mainly Europe and US. Since they don’t have their own specific productivity, they have to depend on these countries largely. So when these countries are affected by their created recession, China also got affected equally since there was no more production orders offered to china from other countries. As their own productivity, china has their own porcelain and handicraft products but that comes under the luxurious goods and demand for these types of products is always limited in the world. Most Chinese production houses are manufacturing various products as per the orders from the other customers. In this process they failed to generate their own identity for particular specialized products. Today China is also facing the recession despite the claims from their government that they maintain stable economy.

The early recession 2001 was mainly observed in western countries affecting the European Union largely during the period of 2001 2003 recession. The U S economy was badly affected during recession 2002 followed by Canada and Australia. Country like Russia did not experience economical prosperity since 1990 observed some faint signs of improvisation. The recession phase touched many growing and developed countries including Japan and England. Most countries were hiding the lean phase of economy and economists of those countries were quite hopeful for the improvisation but things did not settle that way and the lean phase of recession continued further affecting badly to the economies of the country. The recession has largely affected the life of the people. Most work forces were retrenched from various commercial and industrial sector and they were left with no means to survive. Many of them had to opt for inferior jobs to support their existence. The markets were flooded with the goods but the purchasing power was missing. As a result, the production houses had to put a full stop on further manufacturing. Many economists object to characterizing it as a recession in the U S since there were not two consecutive periods of negative growth. During past recessions, the most severe economic impact invariably has fallen on the growing children. The child poverty increased double than the general population. During 2001 recession, the child poverty remained essentially flat while non elderly adult poverty increased remarkably. The recession that started during 2001 differs obviously from the earlier recessions. The current recession has nearly broken from the normal historical pattern. The recession that began since 2001 has continued its span till today and affected badly on the growing economy of all the countries. The vastly populated countries are affected more from the recession. The countries depending on other source for their economy are suffering the most such as China and other far eastern countries. There are countries highly dependent on their parent countries are the worst victims of the bad patch than others. Countries like Pakistan, Philippines and other far eastern countries are mainly depending on U S. They cannot survive without the financial aids from U S and development in these regions is just negligible. Their economy is never developed due to the readymade aid available from their principal. Due to the failure in financial sector, the unemployment has increased throughout the world.