Internationally, within days of the despair at the ruthless Israeli bombardment of Gaza, hopes soared with the start of the Barack Obama presidency, not least because the recession-hit global economy shrank one percent with only India and China growing. Toyota recorded its first ever loss as Japanese exports slumped 45 percent.
February saw Australia’s worst ever bush fires, slaying 173 and leaving thousands homeless. In Bangladesh border troops mutinied murdering over 50 of their officers. Pakistan finally admitted the surviving Mumbai bomber was Pakistani. India demanded Islamabad arrest Lashkar-e-Taiba militants.
In March, India demonstrated its emerging manufacturing power when Tata Motors launched the world’s cheapest car, the Nano. In Lahore, Pakistan, the Sri Lankan cricket team was attacked by terrorists.
In April, 400,000 people were left homeless after an earthquake destroyed the historic Italian town of L’Aquila. Swine flu spread from Mexico to the United States and UK. Many governments rushed to stock up on expensive vaccines as scientists projected hundreds of thousands of deaths. By year-end, 9,000 people had died worldwide.
In May, India’s Congress party retained power after general elections and Manmohan Singh remained premier.
Pakistani Taleban leader Baitullah Mehsud was killed by in a US drone attack. The Pakistan Army ended a much-criticized government truce with militants and began operation to recover control of the Swat Valley. In Sri Lanka, Tamil Tigers were defeated and their leader Vellupillai Prabhakaran was killed, ending the 26-year conflict.
June’s disputed presidential election in Iran brought widespread public protests. Neda Agha-Soltan was the first demonstrator to be killed. In the biggest US corporate collapse, $172-billion-indebted GM filed for Chapter 11 bankruptcy protection. Ponzi fraudster Bernie Madoff was jailed 150 years for $65-billion scam. The world lost a major entertainer when the King of Pop, Michael Jackson died.
US and European bankers bailed out with trillions of tax-payer dollars started to announce huge bonuses for their top executives and traders, to keep talent from moving. There was widespread public rage. The June G20 Pittsburgh summit failed to address the scandal or much else either. A $48 billion Currency Transaction Tax (CTT) to help poor countries was blocked.
Afghan President Hamid Karzai topped the August poll in a flawed election, the crisis only ending in November when challenger Abdullah Abdullah withdrew from a run-off vote.
In October the Pakistan Army moved against Taleban militants in South Waziristan. President Obama was awarded the Nobel Peace Prize. There were rising concerns over sovereign debt. Ireland and Greece were forced to make drastic budget cuts as capital markets were shaken by the Dubai World debt repayment confusion.
In November, after months of consultation, Obama decided to send more troops to Afghanistan but promised early withdrawal. Even longer intergovernmental consultations did nothing to produce agreement at December’s “Make or Break” UN Climate Summit in Copenhagen. Chinese unease at key carbon reduction terms meant Obama flew in to merely ink a deal to do a deal, leaving many other summiteers fuming.
