The election of Barack Obama as the President of US has reflected the popular distrust of the people in the existing economic order. In fact Obama’s election had not come as a surprise. It was not the expected lines.

The Democrat candidate could successfully encashed upon the popular sentiment of the people with the slogan “we want change” This helped him to cross all barriers to ensure his run for the Presidential election by defeating his Republican rival, John McCain by a wide margin. Obama, thus created a history by being the first African-American to be elected as the President of US.

Recognising the realty of the situation, Obama, three days after his election announced “Immediately after I become President, I will confront this economic crisis head on by taking all necessary steps to ease the credit crisis, help hard-working families and restore growth and prosperity??.I want to see a stimulus package sooner rather than later. If it does not get down in the lame-duck session, it will be the first thing I get done as President of the United States.” The President-elect, Barack Obama is slated to assume office on January 20, 2009.

The year 2008 has continued to witness several upheavals in the global economy. The present global meltdown in the financial and equity markets follows hard on the heels of soaring food and energy prices caused primarily on account of intensified bio-fuel programme and excessive speculation and manipulation in the commodity futures. The intensified bio-fuel programme caused diversion of land from food crop to fuel crop in different parts of the globe. Some food crops were used to produce oil for fuel and as a result the food prices moved in tandem with the prices of fossil fuel ? a situation which was never witnessed before.

With a view to contain the rising prices the Governments and central banks across the world adopted a series of measures. Now with the collapse of the financial market a reverse process is being followed to infuse liquidity in the market. The US Administration began the process with a planned bailout package of $700-billion for its ailing financial sector. Governments and central banks across the globe are infusing billions of dollars into the system and cut in interests rates is being contemplated with a view to revive the ailing economy. There are fears that infusion of liquidity in the financial market may subsequently lead to rise in prices. Had the world leaders thought of infusing such an amount for directly eliminating poverty the MDGs could have been achieved at ease.

Despite the writing on the wall the world leaders have expressed scant regard for food security problem. Only $12.3 billion had been pledged by nations in Rome earlier this year for meeting the emerging food security problem, out of which $1 billion has been disbursed. Comparatively, the response to the current financial crisis was quick and prompt.

At the sidelines of the 7th Asia-Europe Meeting (ASEM) in Beijing, China , Japan and South Korea decided to speed up the establishment of a $80-billion fund to fight off currency speculators. The ASEM+3 decided to have a meeting of their finance ministers and central bank governors in Manila to finalise concrete proposals for handling the financial crisis, which would be discussed at the summit meeting in Bangkok in December, this year.

According to FAO, 923 million people were seriously undernourished in 2007. Oxfam estimated that soaring food prices had pushed an extra 119 million people into hunger. The former UN secretary general, Kofi Annan has rightly warned the world leaders that global financial crisis should not be used as an excuse for inaction in the worsening battle against wrenching hunger across the developing world. The world now has the responsibility of fulfilling the Millennium Developmental Goals (MDGs) by lifting nearly one billion people out of poverty, who do not have enough food to eat on a day-to-day basis.

Commodity prices are currently declining, mainly on the expectation of favourable crop prospects but also due to the threat of a global recession. The FAO director-general, Jacques Diouf fears that borrowing, bank lending, official development aid, foreign direct investment and workers’ remittances may be compromised by a deepening financial crisis. The impact of the financial crisis may also be felt in developing countries at the macro level with potentially negative impact on agriculture and food security. The falling grain prices may cause lower investment in agriculture and shrinkage in crop area and reduced harvest in major exporting countries. Given the low grain stock, this situation can lead to another turn of record high food prices next year.

The fluctuation in currency exchange rates has plagued the global economy throughout 2008.

Barack Obama has lot to consider before finalising his “stimulus package.” European Council in Brussels has agreed to the proposal that “the reforms necessary to create a global financial system for the future must be developed and agreed internationally through a process involving all of the key actors”

Though Obama’s initial indications are that he would help the middle class, hard working people, prevent industrial lay offs and restore consumer’s confidence, it is yet to be seen how he designs his economic order

World is also faced by energy crisis caused primarily due to the expensive lifestyles. Obama needs to act on this and see that US ratifies and respects global treaties on environment, conservation of biodiversity and effectively combat climate change with firm commitments.

The threat of recession, increasing corporate monopoly over the farm sector and willful distortion in global farm trade have collectively endangered food security. Will the US Administration under Obama act in this situation ?

This is the time to think of an alternative model of development as several experts have pointed out. The United Nation’s latest World Economic and Social Survey (WESS) released a week before the G8 Summit has noted that the belief in the self-regulating market was no longer credible. Hope the current global crisis would lead to a new order. Will Obama fulfill the aspirations of the people who have sent him to the White House ?