An Analysis of the Relationship Between Travel Security and Economics
In the past month, the world has watched three unfolding economic crises: the Chinese stock market crash, the debt crisis in Puerto Rico and the Greek economic crisis. Together, these events have created uncertainty in global markets and cast doubt on the strength of world’s economic recovery. Before examining the implications to economics and security, it is important to summarize the events of the past month:
- The Chinese stock market lost 24% of its value between June and July. This crash has shaken confidence in the Chinese economy, which has been growing at a clip for several decades.
- After a referendum that rejected a bailout proposal, the Greek government agreed to last minute concessions to its creditors. If this proposal is rejected, Greece could face an economic meltdown.
- In June, Puerto Rico announced that it was unable to repay $72 billion dollars in debt. In response to this crisis, Puerto Rico raised taxes and cut government jobs.
How does the Chinese stock market crash & other Economic Crises impact Travel Security? An International Security Consulting Firm Investigates the Links
In the wake of these events, it is helpful to analyze the relationship between economics and security. For example, economic shocks (like the Greek economic crisis) and high unemployment can cause increased criminal activity and exacerbate social tensions. Protests, demonstrations, and riots often become more frequent following a significant economic downturn.
Political instability is another related factor to economics and security. Economic shocks can lead to sudden, drastic decisions by governments in distress. Capital controls have sometimes been used to prevent the flight of capital, and occasionally there are threats of nationalization or confiscation of foreign assets. Additionally, distressed governments may attempt to pass the blame and denounce foreign governments, global traders, or international organizations. This anti-foreign rhetoric can often create an unfriendly environment for expatriates living in these countries.
It is important to note, that many economic crises do not lead to signifigant security consequences. Crime and violence fluctuate for many reasons, and economics is only one factor. However, history suggests that there can be security ramifications if an economy experiences a significant downturn. The Chinese stock market crash is something to monitor. Therefore, expatriates living abroad and their sponsors should monitor situations like the Chinese stock market crash and Greek economic crisis closely and take action if necessary.
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The IMG Group is a leading international security consulting firm with considerable experience in executive protection. Corporate or business organizations concerned about their need for detailed business security planning can reach out to the IMG Group for assistance. The company’s expert security consultants provide services such as employee travel security, VIP and executive protection, risk and threat assessments, travel security intelligence, workplace violence prevention, protective services, crisis management planning, and more.
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