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US economic instability massively affects South Korea’s economy
BBC 8 [September 17, Lexis]
Seoul, Sept. 17 (Yonhap) - South Korea's top central banker said Wednesday the bank will make efforts to provide liquidity at an appropriate time following the collapse of Lehman Brothers Holdings Inc. On Monday, Lehman Brothers, once America's fourth-largest investment bank, filed for bankruptcy protection after amassing debts worth $60US billion caused by soured real estate holdings. The demise of Lehman sent shockwaves across global markets, with South Korea's key stock index tumbling 6.1 per cent to an 18-month low on Tuesday. On the same day, the local currency also plunged to a 49-month low against the US dollar on deepening woes over economic instability following the collapse of Lehman. "The central bank will spare no effort to supply liquidity at the right time by buying government bonds directly from the market if needed," Bank of Korea (BOK) Gov. Lee Seong-tae told the National Assembly. His remarks came one day after the BOK said it would inject dollars into the domestic won-dollar swap market if necessary, in a potential move to calm market turmoil. South Korea's financial watchdog said earlier in the day that local financial markets "overreacted" to the collapse of Lehman Brothers on Tuesday, adding that South Korean firms have enough capacity to cope with overseas instability. "US financial market jitters could affect the South Korean market temporarily. But local financial firms have enough capacity to cope with overseas instability, and the impact (of the Lehman demise) should be limited in the local market," Kim Yong-hwan, standing commissioner of the Financial Services Commission (FSC), told a radio programme.
Economy Turns Political Stability
Economic instability disrupts political stability
Davis and Trebilcock 8 [Kevin E, Michael J, Fall, The American Journal of Comparative Law , 56 Am. J. Comp. L. 895, Lexis]
More dynamic theories of how political conditions are related to legal change focus less on whether political power is exercised in a predatory or a benevolent fashion and more on the extent of competition for and conflict over political power. The resources lost to this kind of competition could presumably be channeled into the improvement of legal institutions. Moreover, chronic political conflict and competition prompted by deep social divisions may lead to political [*927] instability. For instance, Alesina and Perotti argue that extreme income inequality fuels social discontent and so exacerbates political instability. n131 Similarly, Amy Chua argues that socio-political instability is likely to result when economic inequalities track ethnic divisions so that wealth is concentrated in the hands of ethnic minorities. According to Chua, in many cases this phenomenon tends to persist or even be exacerbated by the operation of free market forces and tends to foment inter-ethnic envy and hatred. As a result, certain types of societies, specifically, societies that simultaneously attempt to endorse free markets and democracy, are inherently unstable. n132 Political instability may in turn lead to legal instability which, as we have already observed, is widely viewed as being incompatible with the rule of law. n133
Economy Turns Hunger/Terrorism/Nuke War
Economic collapse exacerbates food scarcity, terrorism and nuclear engagement
Japan Times 8 [October 16, Lexis]
Rising geopolitical risks have been underscored by today's multiple global crises - from a severe global credit crunch and financial tumult to serious energy and food challenges. Add to that the international failure to stem the spreading scourge of terrorism and the specter of a renewed Cold War arising from the deterioration in relations between the West and Russia since Moscow's August retaliatory military intervention in Georgia and subsequent recognition of the breakaway regions of South Ossetia and Abkhazia - actions that some portray as the 21st century's first forcible changing of borders. The world clearly is at a turning point, underscored by the ongoing tectonic shifts in political and economic power.
Economy Turns Biodiversity
Economic decline leads to loss of Biodiversity
Alier and Farley 9 [Joan, Martinez Joshua June 1 The Encyclopedia Earth, http://www.eoearth.org/article/Herman_Daly_Festschrift~_Socially_Sustainable_Economic_Degrowth]
In National Income Accounting one could introduce valuations of ecosystem and biodiversity losses either in satellite accounts (physical and monetary) or in adjusted GDP accounts (“Green Accounts”). The economic valuation of losses might be low compared to the economic gains of projects that destroy biodiversity. However, which groups of people suffer most by such losses? In their project “Green Accounting for India”, Sukhdev, Gundimeda and Kumar found that the most significant direct beneficiaries of forest biodiversity and ecosystem services are the poor, and the predominant impact of a loss or denial of these inputs is on the well-being of the poor. The poverty of the beneficiaries makes these losses more acute as a proportion of their “livelihood incomes” than is the case for the people of India at large. Hence the notion of "the GDP of the Poor": for instance, when water in the local river or aquifer is polluted because of mining, they cannot afford to buy water in plastic bottles. Therefore, when poor people see that their chances of livelihood are threatened because of mining projects, dams, tree plantations, or large industrial areas, they complain not because they are professional environmentalists but because they need the services of the environment for their immediate survival. This is the “environmentalism of the poor”.
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