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Answer to Global Recession Is Entrepreneurship & Opportunity

Answer to Global Recession Is Entrepreneurship & Opportunity
The Global recession has led to lower public confidence in financial institutions and the economy Governments should focus more increasing entrepreneurship, not regulation, to get out of economic slumps.
Since mid-2008, the world has been hit by a major financial crisis, which quickly translated itself into a global recession. According to the IMF, the world economy shrank by 0.6% in 2009. Between 2007 and 2009, public confidence in financial institutions has decreased in 50 out of the 72.
Prosperity Index countries, for which there is more than one year of data.
According to Gallup World Poll data, which we have used in the Legatum Prosperity Index, the largest decrease is in Ireland in 2008, 69% of the population reported confidence in financial institutions. This rate dropped 43 percentage points to 25% in 2009. The United States and United Kingdom fall closely behind, both with decreases of around 25 percentage points from 2007 to 2009. The US confidence level dropped from 74%* to 46% and the UK confidence dropped from 63% to 36%, says Dr. Ashley Lenihan, senior fellow at the Legatum Institute.
Of the 110 countries in the Index, the US has the 86th lowest confidence level, while the UK are down at 101st and Ireland at 107th, added Dr. Lenihan.
The fourth annual edition of the Legatum Prosperity Index, published today, includes measures such as confidence in financial institutions to give a comprehensive insight into what fosters wealth and happiness in the world.
Much of the economic data that exists only capture the initial effects of the global recession, and it will take some time before we can turn to 2009 and 2010 data for further analysis. However, timely data on citizens perceptions of the financial institutions, and other factors like expectations of job availability and economic conditions, provides insight into how the financial crisis has hampered public morale about the economy.
The US, UK, and Ireland, alongside France, Germany, Italy, boast some of the highest standards of living in the world. And these overall standards will remain high as long as governments dont allow for the lowered morale to turn into systemic and institutionalised fears about the economy.
The Prosperity Index finds that if governments are able to respond to decreased public confidence by providing more opportunities for entrepreneurship and growth to its citizens, countries will to continue to be prosperous. Not only is entrepreneurship crucial for making countries rich, an entrepreneurial culture and presence of economic opportunities actually makes people happier.
Despite the large decrease in the publics confidence in financial institutions, countries like the United States, Ireland, and the United Kingdom are able to remain at the top because they are in the top 10 countries for Entrepreneurship & Opportunity. To foster prosperity and get out of financial slumps, governments should foster entrepreneurial activity.


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