Terming Islamic State as the new danger to civilisation, Finance Minister Arun Jaitley warned on Tuesday that the impact of the terror group on global economy as a whole cannot be understated. Given such a situation, he said that global resources meant for poverty alleviation will now be diverted towards security measures.
“…if you see occasional green shoots or signs of recovery, that proves to be patchy at times and then it is overtaken by certain geopolitical factors which create global instability. What the ISIS has been doing in the last few months across the world, itself poses a new danger to civilisation and therefore it’s impact on global economy cannot be understated,” Jaitley said at an ASSOCHAM event here.
“Buoyancy in currency, trade, its adverse impact on tourism all these are going to be consequential factors. And global resources which were earlier intended to be spent on poverty alleviation and meeting the challenges of development will now be increasingly diverted towards security measures. And which part of the world will be safe itself will become a good question,” he said.
The terrorist outfit Islamic State or ISIS, which has captured territories in Iraq and Syria, was behind the recent attacks in Paris that killed 130 people.
Jaitley said earlier management of the economy was easier because there was one crisis in a decade or more. “But now, today, you live in a world, which is full of turmoil, full of volatility and you have to be think ahead of others because you are continuously busy dousing the impact of one fire and trying to put firewalls around your own economy so that you can be saved of that crisis. I do believe the new global norm is volatility and turmoil. It is no longer stability and things can change very fast,” he said.
Amid all the turmoil, India carves out its own place, he said. “Even if we can’t insulate ourselves from global trends, how do we minimise its impact in adversity, and how do we take advantage in emerging global situation. History presents us with this challenge,” Jaitley said.