The complexity of economic, political and social processes taking place in the world leads to collisions that develop in crises. Economic and political crises today occur with enviable regularity. The reasons for their occurrence may be different.
In relation to the economy, a crisis is understood as a very significant violation of its functioning, leading in general to a general decrease in activity in all its fields. As a rule, an economic crisis leads to a long-term decrease in production, consumption, and the accumulation of debts that cannot be repaid in a short time. The consequence of this is bankruptcy, an increase in unemployment, a decrease in GDP.
There are two main forms of the economic crisis. This is a crisis of overproduction and underproduction. The reason for the phenomenon of the first kind is the accumulation of excess quantities of goods on the market. Their appearance is caused by the desire of manufacturers to get more profit by expanding production. In a free economy and strong competition there is no possibility of accurate forecasting of sales volumes. The inability to sell the goods produced dictates the need for artificial stimulation of demand due to a sharp decline in prices. This leads to curtailment of production and bankruptcy of enterprises. The situation is compounded by the fact that many businesses crashing during the crisis are open with borrowed funds.
The crises of underproduction are largely due to artificial reasons in relation to the economic system. They arise due to phenomena that violate the normal functioning of industries, financial, transport and other systems of the state. It can be wars, a raw embargo, natural disasters.
Financial and political crises are often interconnected. However, they can proceed absolutely independently. The political crisis in the general sense is expressed in unstable relations between political forces at various levels and at different scales. Accordingly, we can distinguish between domestic and foreign political crises. The former arise locally, on the scale of one country. They are expressed in the weakening of state power, inconsistency of the political course, often lead to a struggle for power, riots, riots.
Interstate political crises arise as a result of conflicting interests of countries on different grounds (territorial disputes, division of international markets, etc.). Depending on the severity of the disagreements, political crises can be resolved through diplomatic means or continue to evolve into armed conflicts.
