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Our smaller future

A year ago, in this very column, I discussed the myopia of budget 2008, which did not touch upon events then beginning to unfold. Since then we have seen the world collapse and, perhaps, even change forever.

First came the food crisis, early last year. As prices of daily bread soared, riots broke out and food shops ran empty. Countries realized the value of growing food locally. Then, even as food prices stabilised somewhat (it remains high), oil prices jumped so high even our normally unflappable finance minister yelped. Since then, the price has crashed and with economic slow-down promises to stay down. But the world did learn the pain of high price and shortages. Not enough, of course, for it to get serious about re-inventing energy security. But learn it did.

By September 2008, our economic czars, exhaling from oil-relief, had to hold their breath again. Starting with Lehman Brothers, the biggest of the big started crashing; every week brought a new surprise and a different downfall. For once, even the know-it-alls

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