Does the immanent global economic crisis affect international trading practices?

Unfortunately, if Europe does not get its act together politically to stave off such a horrendous implosion of the economic crafted unity, one can expect nationalistic protective measures to reappear that won't serve anyone in the long term. One does hope though that some enlightened self-interest will "inspire" the current leaders to take their responsibility beyond short term nationalistic responses.

It is in China's interest to invest some of the trade surpluses and hot money inflows into the euro; it is America's national obligation to reduce its budget deficit in the medium term; as it is undoubtedly in Europe's own interest to get the euro crisis under control with sustainable policies and not with short term bandage-policies.

Moreover, it is important to rethink what kind of economic growth Australia would like to re-establish. Australia may take the opportunity to make some hard choices in terms of sustainable growth that is based on a global open market system. And some pure national interests like the coal industry will vehemently react to such suggestions.

That should not be a surprise. It is even reasonable from their perspective. However, it is the duty of Australian leadership – and of every country for that matter – to take this global crisis seriously, to address some of the hot issues as an opportunity not to "waste the crisis." That would be good policy, in the interest of the nation, but not based on mere nationalistic emotions of short term thinking. It will require enormous political courage. Crises make or break leadership.