During a global crisis, events such as world war, economic decline, natural disasters or pandemic healthcare emergencies impact all countries and people in different ways. They can cause a wide range of social, cultural and financial problems. Global crises can also affect individual’s well-being, affecting their emotions and mental state.
Several interconnected global crises are occurring, including a growing number of displaced people fleeing conflict and climate change; a global food, energy and finance crisis; and a COVID-19 global pandemic healthcare crisis resulting in flight cancellations, sea and land transport restrictions and lockdowns. The UN has established a global response group to tackle these challenges.
The global financial crisis (GFC) occurred when the collapse of Lehman Brothers in September 2008, triggered panic in global financial markets. The GFC resulted in large and sudden declines in economic activity and unemployment. Governments responded by increasing spending and extending credit to banks; guaranteeing deposits and bank bonds; purchasing ownership stakes in some of the world’s biggest financial firms; and adopting policies to lower policy interest rates to near zero, a process known as quantitative easing.
These responses helped limit the GFC’s damage, but many economies struggled to recover from it and have taken longer than they would have if not for the policies. The GFC led to increased distrust of institutions. People attributed the crisis to specific causes, such as the actions of corrupt or irresponsible individuals or institutions; and reported being less willing to trust them in the future.