During the past six years, political turmoil has swept the world. It began with the 9/11 event, followed by the bombings in Bali, Madrid and London, as well as the two US-led wars in Afghanistan and Iraq, which was protracted and increasingly destabilizing. Add to this the war between Israel and Lebanon, deadlock in the Palestinian issue, North Korea’s nuclear test, etc.
However, during this very period bulging with vicissitudes, the world economy has experienced its fastest increase spurt in more than three decades. Per capita GDP growth during the stormy years is reported to be higher than any comparable period in recorded history.
What are the implications underlying the paradox above? Markets are supposed to be smart. The current era of globalization is more powerful, widespread and resilient than many of us realized.