This is a research essay that was made in order to apply for a scholarship at The European Business School of London EBSL on May of 2009.

1. A new world´s order
1
Obama:
Can a nation´s leader guide a new world´s order?
Myriam M. Sanchez
The EBSL International Scholarship
May 18, 2009

2. A new world´s order
2
Obama:
Can a nation´s leader guide a new world´s order?
We have been witnesses and victims of a domino effect that has reached every
economy in the world. We have been living what was a consequence of a series of
accumulated mediocre regulations in finances and irresponsible measures. United
States´ interest rates got higher; as a result it was more difficult to get credit and stock
market collapsed. In 2007, “banks announced $60bn worth of losses as many of the
mortgage bonds backed by sub-prime mortgages have fallen in value”1 and this year
“HSBC faces a meltdown at its US credit card operations where around $50bn (£34bn)
has been lent to people with poor credit histories, say analysts”.2
The subprime crisis “a 2007 financial crisis that started in the United States of America
from the high number of defaulting borrowers with subprime mortgages”3 brought
serious repercussions to banks and financial markets around the world, it´s dramatic
rise took place during the George W. Bush administration and its long-term economic,
political and social impacts as well as possible solutions have been a priority since, for
countries around the globe.
January 20th of 2009 became a milestone, for the first time in the history of the United
States an afro-American candidate took Washington´s presidency, his name became a
brand, his followers call him Obama.
1
BBC News (2009). The downturn in facts and figures. Retrieved May 17, 2009 from
http://news.bbc.co.uk/2/hi/business/7073131.stm
2
Washman, Richard. Guardian News and Media Limited/the observer (2009). Retrieved May 17, 2009
from http://www.guardian.co.uk/money/2009/apr/12/hsbc-credit-cards-us-business
3
Woopidoo Business Glossary. Subprime mortgage crisis. Retrieved May 18, 2009 from
http://www.woopidoo.com/glossary/subprime-crisis/index.htm

3. A new world´s order
The following paper will examine a new president in the White House with great
3
popularity and support from a global public and his capacity to confront the crisis´
repercussions, in an attempt to answer if this nation´s leader can guide a new world´s
order.
Leaders of every nation are concerned of the weakness and failures the actual
economic structure has shown since past years. It is not possible to continue in such
risky way and expect an invisible hand to arrange the results.
The London Summit of 2009 took place recently and the different representatives of
the G20 (a new mechanism for informal dialogue in the framework of the Bretton
Woods institutional system, to broaden the dialogue on key economic and financial
policy issues among systemically significant economies and to promote cooperation to
achieve stable and sustainable world growth that benefits all)4, were reunited to
discuss which measures could be adopted, in order to confront the economic crisis.
“This is the day that the world came together, to fight back against the global recession.
Not with words but a plan for global recovery and for reform and with a clear
timetable,” British Prime Minister Gordon Brown said at the end of the London Summit
of G20 countries on 2 April.5
President Obama´s arrival was synonym of hope, of change, this time there was a
dialogue and cooperation warranty. He was very well received by the English public
4
Kirton, John. University of Toronto. What is G20? Retrieved May 20, 2009 from
http://www.g8.utoronto.ca/g20/g20whatisit.html
5
The London Summit (2009) - Global Update. United Kingdom. Retrieved May 18, 2009 from
http://www.londonsummit.gov.uk/en/global-update/cp-uk/

4. A new world´s order
and media, his open-minded and humble attitude confirmed the White House´s new
4
policy pattern. The London Summit painted the new economic order´s road and
concluded that global equity markets were the first bricks of the pathway.
Protectionism was the judged practice along with tax havens, unity was the keyword,
this reunion contained tougher than expected measures to tighten financial regulation
and presented to the global community more than one alternative, an important call
for compromise by Barack Obama.
But not everything has been the fulfilling of promises, according to ´eurodad´ (the
European network on debt and development), the finance ministers that assisted to
the Washington´s meeting to follow a continuation of the London Summit´s
agreements, there has been very little progress:
Finance Ministers managed to do little more than restate the London commitments.
Impoverished countries don't know yet on how much they will count and the extent
to which the IMF will grant this finance at reasonable terms and avoid making past
mistakes…To obtain more, poor countries would have to borrow at market interest
rates, which are presently very low, but may rise in the near future and trap them
into new spirals of unsustainable debt.6
We are aware this financial crisis has hit the richest countries hardest and poorest
ones are not the exception, this is a call for a new global outline of financial regulation
and the task is not as simple as it sounds, it is a very complex process and twenty-five
6
eurodad (2009). Finance ministers in Washington fail to deliver on G20 promises. Retrieved May 18,
2009 from http://www.eurodad.org/whatsnew/articles.aspx?id=3008&item=3603

5. A new world´s order
days after the London Summit took place, was too soon to assume that these countries
5
have already completed and studied a proportioned anti-crisis plan to know in detail
how much they need to borrow, for example. In fact, this Summit included two
important Latin-American countries, Brazil and Mexico that had a very important
participation as developing countries and represented the region. Any new agreement
would have to reshape the institutions created to regulate the international monetary
and financial order in the past, cooperate with impoverished countries and encourage
developing economies and such changes are not likely to be either quick or easy.
For the United States, Mr. Obama has determined a very complex agenda; it embraces
several reforms in the most important aspects going from health care, passing through
education, energy, ending with war in Iraq and Guantanamo´s closure.
Moreover he presented arguments of the best way to manage the crisis in the United
States, as he insisted on investing, practice that with lead to an economic recovery.
“the only way to fully restore America’s economic strength is to make the long-term
investments that will lead to new jobs, new industries, and a renewed ability to
compete with the rest of the world.”7
With a true commitment expressed by Barack Obama and the fact that he admitted his
country was responsible for the current crisis, we now know we are walking in the
right road, remembering what Winston Churchill once said: “Courage is what it takes
7
The White House- Press Office (Tuesday, February 24th, 2009 at 9:01 pm). Remarks of President Barack
Obama -- Address to Joint Session of Congress. Retrieved May 13, 2009 from
http://www.whitehouse.gov/the_press_office/remarks-of-president-barack-obama-address-to-joint-
session-of-congress/

6. A new world´s order
to stand up and speak; courage is also what it takes to sit down and listen”. Although
6
President Obama has had a difficult start, he is serving the country the best way he can.
Our nations have known difficult times together. But ours is a bond forged by
shared bloodshed, and countless friendships among our people. We Americans
have offered our most precious resource- our young men and women – to work
with you to rebuild what was destroyed by despotism.8
In the same way, President Obama is also marking a new politic openness with those
countries the Bush administration failed in cases like Iraq were a war occurred or
Cuba´s seizure continuation, and making this the essential part of his strategy.
Whether it is with the Latin-American region, Middle East or Asia he understands the
importance of working close to allies building new bonds of friendship and partnership
because, that is how America can recover his genuine leadership and that new chapter
has begun.
Rebuilding alliances and helping the United Nations Human Rights´ Council improve its
credibility have been some essential actions in this government, “The United States
can make an important contribution making the [U.N. Human Rights] Council a more
8
The White House- Press Office (Friday, February 27th, 2009 at 12:42 pm). Remarks of President Barack
Obama – Responsibly Ending the War in Iraq. Retrieved May 13, 2009 from
http://www.whitehouse.gov/the_press_office/Remarks-of-President-Barack-Obama-Responsibly-
Ending-the-War-in-Iraq/

7. A new world´s order
effective body," said Kenneth Roth, executive director of Human Rights Watch
7
9
(HRW).”
Likewise he is conscious that the United States of America has been acting in the
world´s scenario without a determined objective in its national interest as he declared
in his speech “We have learned that America must go to war with clearly defined
goals… We have learned that we must always weigh the costs of action, and
communicate those costs candidly to the American people…”10 America needs a new
realism in its foreign policy to face the world, a call to act with ethics, moral principles
and follow the nation´s interests altogether. Therefore find a common ground were its
own interests can be placed with the interests of others to restore its reputation, for
that crusade to begin, History has chosen Barack Obama.
Equally important has been health these days, nearly 100 days since the President took
charge of the White House, a new emergency of public concern appeared. Swine Flu
(AH1N1 influenza caused by those strains of influenza virus, called swine influenza
virus (SIV), that usually infect (is endemic in) pigs…This strain can be transmitted from
human to human, and causes the normal symptoms of influenza)11, attacked people in
Mexico and the US at first, spreading later to the rest of the countries. Barack Obama
9
Rizvi, Haider, Global Policy Forum (April 2, 2009). In Reversal, US to Engage With Human Rights Council.
Retrieved May 18, 2009 from
http://www.globalpolicy.org/index.php?option=com_content&view=article&id=32501&c
atid=228
10
The White House- Press Office (Friday, February 27th, 2009 at 12:42 pm). Remarks of President Barack
Obama – Responsibly Ending the War in Iraq. Retrieved May 13, 2009 from
http://www.whitehouse.gov/the_press_office/Remarks-of-President-Barack-Obama-Responsibly-
Ending-the-War-in-Iraq/
11
Wikipedia, the free encyclopedia (2009), Swine Influenza. Retrieved May 18, 2009 from
http://en.wikipedia.org/wiki/Swine_influenza

8. A new world´s order
has assured safety in his country with important sanitary precautions, emphasized in
8
the need of science improvement and at the same time expressed his solidarity with
affected nations. He is the kind of leader that prefers to focus on development and
progress instead of expectations, fears and threats; he is a leader of facts, not of
words.
Obama´s popularity and acceptance from a large number of people around the world
has been a fact since the beginning. A BBC World Poll suggested, World wanted him as
president, “Mr. Obama was favored by a four-to-one margin across the 22,500 people
polled in 22 countries.”12 He has been characterized for being surrounded by a large
group of experts, a big percentage of them Latin-Americans, demonstrating his
knowledge that today´s globalization era and multipolar world can only be studied by
statesmen whom understand diverse cultures´ aches.
On the whole, President Obama´s comprehension skills in hemispherical issues have
gone far beyond:
My job – our job – is to solve the problem. Our job is to govern with a sense of
responsibility… History reminds us that at every moment of economic upheaval and
transformation, this nation has responded with bold action and big ideas. 13
12
BBC News (2009), Obama win preferred in world poll. Retrieved May 18, 2009 from
http://news.bbc.co.uk/2/hi/americas/7606100.stm
13
The White House- Press Office (Tuesday, February 24th, 2009 at 9:01 pm). Remarks of President
Barack Obama -- Address to Joint Session of Congress. Retrieved May 13, 2009 from
http://www.whitehouse.gov/the_press_office/remarks-of-president-barack-obama-address-to-joint-
session-of-congress/

9. A new world´s order
He ensures a total reform of the United States´ foreign aid system, with a special
9
emphasis on increasing the quality of aid, as well as the quantity. We have seen his
concern for climate change, health care and peace maintenance.
“I´m asking you to believe. Not just in my ability to bring
about real change in Washington...I´m asking you to believe in yours."
-Barack Obama
We now live in an interdependent world that lacks of barriers, were cultural
encounters take place often, that possesses an instant communication platform, and
were the pursuit of peace, environmental health, and economic stability are common
goals. This new president will have to work hard so the government takes a more
important roll regulating the economy; next, will have to win the sympathy and
support of the republican part of the Congress to take more steps forward in his
agenda; later, help with Iraq´s development and progress, remove the combat
brigades and establish a permanent diplomacy seeking a lasting relationship of
common interests; after, focus in Al-Qaeda and stop their influence in Afghanistan and
Pakistan to assure United States security; finally, he will have to apply an intense
diplomacy with Iran in order to avoid the development of nuclear weapons and be the
mediator between Israel and the Arab world to take the war to its end.
A new hope emerged, a return to moral principles; its time to build a bond that
proclaims unity in diversity and let this nation´s leader help in the guidance of a new
world´s order.

10. A new world´s order
References
10
BBC News (2009), Obama win preferred in world poll. Retrieved May 18, 2009 from
http://news.bbc.co.uk/2/hi/americas/7606100.stm
BBC News (2009). The downturn in facts and figures. Retrieved May 17, 2009 from
http://news.bbc.co.uk/2/hi/business/7073131.stm
eurodad (2009). Finance ministers in Washington fail to deliver on G20 promises.
Retrieved May 18, 2009 from
http://www.eurodad.org/whatsnew/articles.aspx?id=3008&item=3603
Kirton, John. University of Toronto. What is G20? Retrieved May 20, 2009 from
http://www.g8.utoronto.ca/g20/g20whatisit.html
Rizvi, Haider, Global Policy Forum (April 2, 2009). In Reversal, US to Engage With
Human Rights Council. Retrieved May 18, 2009 from
http://www.globalpolicy.org/index.php?option=com_content&view=article&a
mp;id=32501&catid=228
The London Summit (2009) - Global Update. United Kingdom. Retrieved May 18, 2009
from http://www.londonsummit.gov.uk/en/global-update/cp-uk/

11. A new world´s order
The White House- Press Office (Tuesday, February 24th, 2009 at 9:01 pm). Remarks of
11
President Barack Obama -- Address to Joint Session of Congress. Retrieved May 13,
2009 from http://www.whitehouse.gov/the_press_office/remarks-of-president-
barack-obama-address-to-joint-session-of-congress/
The White House- Press Office (Friday, February 27th, 2009 at 12:42 pm). Remarks of
President Barack Obama – Responsibly Ending the War in Iraq. Retrieved May 13,
2009 from http://www.whitehouse.gov/the_press_office/Remarks-of-President-
Barack-Obama-Responsibly-Ending-the-War-in-Iraq/
Washman, Richard. Guardian News and Media Limited/the observer (2009). Retrieved
May 17, 2009 from http://www.guardian.co.uk/money/2009/apr/12/hsbc-credit-
cards-us-business
Wikipedia, the free encyclopedia (2009), Swine Influenza. Retrieved May 18, 2009 from
http://en.wikipedia.org/wiki/Swine_influenza
Woopidoo Business Glossary. Subprime mortgage crisis. Retrieved May 18, 2009 from
http://www.woopidoo.com/glossary/subprime-crisis/index.htm