WHAT IS CLIMATE CHANGE? CAUSES, CONSEQUENCES AND

SOME SOLUTIONS, RESPONSE TO THIS CLIMATE CHANGE

Indicator:  Nguyen Thi Thu Thuy

In Vietnam, in recent years, the phrase "climate change" has been interested and sought by many people. Climate change not only has an adverse impact on human life on earth but also threatens the human environment in the future. So what is climate change? What causes climate change, impacts and solutions, and how to respond to climate change? Let's find out in the content of this presentation.

1. What is climate change?

Climate change is the change of the earth's climate system including: atmosphere, hydrosphere, biosphere, lithosphere due to various natural and manmade causes. This phenomenon has significant effects on the many components and the ability to recover or reproduce on many of the earth's ecosystems.

For humans, climate change affects the socio-economic system and directly affects human health on earth.

Currently, the change that is raising global temperatures and causing rising sea levels is one of the top challenges that humanity has to tackle.

Changes in weather may occur in a certain region or may occur around the world.

Climate change is often referred to as climate change, also known as global warming.

2. Causes of current climate change

There are many causes of climate change. However, it can be divided into two main causes:

Subjective reasons

This cause is largely due to the human influence. Due to changes in land and water uses and an increase in emissions and some other greenhouse gases from human economic activities.

These effects will be to change the atmosphere of the earth. When the concentration of greenhouse gases exceeds the alarming level, the temperature of the earth will increase. This will change the weather in many parts of the earth.

Objective reasons

Factors that can cause climate change to occur are changes in atmospheric radiation, including processes such as solar radiation changes, Earth's orbit deviations, mountain tectonic processes, and ants. creating continental drift and changes in greenhouse gas concentrations. Many of the different environmental responses on climate change can enhance or reduce initial changes. Some components of the climate system, such as oceans and icecaps, respond slowly to changes in solar radiation because of their mass. Therefore, the climate system may take centuries or longer to fully respond to external changes.

3. Consequences of climate change

Climate change has many consequences for the ecosystem as well as the human environment. Here are some consequences for the earth:

Firstly, the ecosystem is destroyed: The ever-changing climate change will make the earth's ecosystem change. The change will make fresh water shortages, polluted air environment, Natural energy resources are gradually exhausted and some other problems. Typically the consequences of climate change affect ecosystems such as causing bleaching of corals due to warming seawater.

Second, the loss of biodiversity: The Earth's temperature is increasing so this will put some species at risk of disappearing or even becoming extinct. The main reason is that the habitat of these animals is threatened by human deforestation. Deserted land and invasive seawater also threaten our habitats.

Thirdly, epidemics: When the environment temperature increases, it is accompanied by natural phenomena such as floods, drought, which will create conditions for infectious animals such as rats and mosquitoes to breed. Infections will cause many effects on human health. The World Health Organization has warned that some dangerous diseases have spread in many parts of the world. Many areas that used to have a cold climate now also have some tropical diseases.

Fourthly, the sea level rises: Today due to rising temperatures makes the sea level also gradually increases. Increasing temperatures will cause the glaciers, sea ice or some of the world's ice continents to melt and cause the amount of water flowing into the sea and oceans to increase. Sea level rise will make the coast disappear.

4. What is the situation of climate change in Vietnam today?

Currently, Vietnam is one of the countries that are seriously affected by climate change such as: sea level rise, especially the situation of sea water encroachment taking place in a positive direction in coastal areas.

In Vietnam, the region has a tropical monsoon climate, the frequent occurrence of storms from the sea and must respond to flooding caused by climate change. The climate change situation affecting Vietnam is most evident in the fact that residential land will be flooded, which will directly affect the living environment of the people. Every year, Vietnam suffers more than 10 storms from the climate.

5. Climate change solutions

There have been many joint United Nations  conventions that bring countries on climate change, and this is also legal for the world's efforts to fight climate change around the world. The goal of these conventions is to stabilize greenhouse gas concentrations in the atmosphere in moderation. The Convention sets out a number of principles to achieve the goal of stabilizing greenhouse gas concentrations: prevention, cost-effectiveness, sustainability and shared responsibility that require developed countries to take the lead in combating greenhouse gas emissions. climate change again.

6. Responding to climate change

In order to cope well with climate change, countries must carry out a number of activities such as:

Limit the use of fossil materials.

Renovate and upgrade infrastructure.

Preventing deforestation.

Application of new technologies in protecting the environment and the Earth.

I hope the information above can help you understand the harmful effects of climate change to our living environment as well as the world's creatures. Let's join hands to build a new environment without harmful emissions now. In order to contribute to creating a green, clean, beautiful environment and conditions for comprehensive human development.

FINANCIAL CRISIS

Hoang Thi Hai Yen

1. What Is a Financial Crisis?

In a financial crisis, asset prices see a steep decline in value, businesses and consumers are unable to pay their debts, and financial institutions experience liquidity shortages. A financial crisis is often associated with a panic or a bank run during which investors sell off assets or withdraw money from savings accounts because they fear that the value of those assets will drop if they remain in a financial institution. Other situations that may be labeled a financial crisis include the bursting of a speculative financial bubble, a stock market crash, a sovereign default, or a currency crisis. A financial crisis may be limited to banks or spread throughout a single economy, the economy of a region, or economies worldwide.

2. What causes financial crises?

Financial crises occur following either bank runs or a sudden severe drop of asset prices in capital markets, both of which will consequently cause the collapse of big financial and non-financial firms.

First observe these problems in the banking sector or in capital markets. This leads to a contraction in credit supply, which has an impact in other sectors, causing the recession in the real economy.

The first is the sunspot theory, in which bank runs are caused by random deposit withdrawals that are unrelated to changes in the real economy. The second is the business cycle theory: bank crises are not random events, but a response by depositors to the arrival of sufficiently negative information on the unfolding economic circumstances.

Kaminsky and Reinhart (1999) also studied a wide range of crises affecting 20 countries, including 5 industrial and 15 emerging economies. They found that financial liberalization and significant credit expansion occurred before many of the financial crises. According to the authors, there was too much liquidity in the system. Liquidity refers to the ability to convert assets into cash at a price and time of your choosing. Too much liquidity in the financial system provides incentives for investors to take unnecessary risk, and the excess liquidity caused asset price bubbles to build up. An asset price bubble occurs when people invest in a market (possibly shares, or property, or commodities) because they think the rising price will continue to increase. The demand from investors then causes the asset price to rise in a self-fulfilling cycle. The increase in price is due to speculation, and is not supported by any fundamental changes in demand and supply in the economy.

            Without continuing rising demand from investors, at some point the asset price bubble bursts. The financial sector is very vulnerable to shocks, and a shock that initially affects only a particular sector or a few firms and institutions, or a specific region, can easily become systemic and then infect the larger economy – referred to as contagion. The contagion effect exists because of direct linkage between banks (or financial networks) and indirect balance sheet linkages among firms.

3. Financial Crisis Examples 

Financial crises are not uncommon; they have happened for as long as the world has had currency. Some well-known financial crises include:

• Tulip Mania (1637). More of a speculative bubble, this crisis happened when contract prices for bulbs of a new, fashionable tulip reached prices of many multiples of the annual salary of a Dutch craftsman before they collapsed, erasing many fortunes.
• Credit Crisis of 1772. After a period of rapidly expanding credit, this crisis started in March/April in London. Alexander Fordyce, a partner in a large bank, lost a huge sum shorting shares of the East India Company and fled to France to avoid repayment. A panic led to a run on English banks that left more than 20 large banking houses either bankrupt or stopping payments to depositors and creditors. The crisis quickly spread to much of Europe. Historians draw a line from this crisis to the cause of the Boston Tea Party—unpopular tax legislation in the 13 colonies—and the resulting unrest that gave birth to the American Revolution.
• Stock Crash of 1929. This crash, starting on Oct. 24, 1929, saw share prices collapse after a period of wild speculation and borrowing to buy shares. It led to the Great Depression, which was felt worldwide for over a dozen years. Its social impact lasted far longer. One trigger of the crash was a drastic oversupply of commodity crops, which led to a steep decline in prices. A wide range of regulations and market-managing tools were introduced as a result of the crash.
• 1973 OPEC Oil Crisis. OPEC members started an oil embargo in October 1973 targeting countries that backed Israel in the Yom Kippur War. By the end of the embargo, a barrel of oil stood at $12, up from $3. Given that modern economies depend on oil, the higher prices and uncertainty led to the stock market crash of 1973–74, when a bear market persisted from January 1973 to December 1974 and the Dow Jones Industrial Average lost 45% of its value.
• Asian Crisis of 1997–1998. This crisis started in July 1997 with the collapse of the Thai baht. Lacking foreign currency, the Thai government was forced to abandon its U.S. dollar peg and let the baht float. The result was huge devaluation that spread to much of East Asia, also hitting Japan, as well as a huge rise in debt-to-GDP ratios. In its wake, the crisis led to better financial regulation and supervision.
• The 2007-2008 Global Financial Crisis. This financial crisis was the worst economic disaster since the Stock Market Crash of 1929. It started with a subprime mortgage lending crisis in 2007 and expanded into a global banking crisis with the failure of investment bank Lehman Brothers in September 2008. Huge bailouts and other measures meant to limit the spread of the damage failed and the global economy fell into recession.