Global economy is caught in the downdraft of complex events like subprime crisis, risky assets like collateralized debt obligations, credit crunch, collapse of stock market and global growth. It is now threatening to find itself in a vicious circle of escalating protectionism. Wikipedia defines `Protectionism' as "the economic policy of restraining trade between nations through methods such as tariffs on imported goods, restrictive quotas, and a variety of other restrictive government regulations designed to discourage imports, and prevent foreign takeover of local markets and companies.

Protectionism is rapidly replacing free trade. The financial crisis that emanated in the US is now creating ripples all over the world, hitting sectors like manufacturing and services. In the last quarter of 2008, US GDP fell by 6.2% at an annual rate, the UK by 6%, Germany by 8.2% and Japan by 12.7%. Mexico, China, South Korea, Thailand and Singapore and most of Eastern Europe are also in deep economic mess. The economic data does not reveal the exact story of what is unraveling in individual economies. In almost all countries, factories are being shut down and unemployment is rising, creating socio-political unrest.

The Analyst Magazine, Protectionism, Global Prosperity, Global Economy, Financial Crisis, Gross Domestic Product, GDP, Association of Southeast Asian Nations Countries, ASEAN Countries, Institute of International Finance, IIF, World Trade Organization, WTO, International Monetary Fund, Economic Turbulence, Smoot-Hawley Tariff Act, Economic Issues, International Labor Organization, ILO.