Demand will revive, but only slowly.

Without political reforms, China s confidence in herself will quickly turn into disillusion, or even delusion.

At this point, policy becomes expansionary again, and the cycle begins anew led by investment growth, the economy rebounds.

The people of Indonesia, and Bali in particular, have hardly recovered from the 2002 terrorist attack and therefore need the support of the international community.

For example, demand for investment goods may rebound, especially in certain hard hit sectors, after a recession has caused physical capital to become technologically obsolete.

Sawsan, his eldest daughter, holds his hand. Walking the six kilometres to Molyvos later, however, he revives despite the relentless heat and admires the lush agricultural fields, flowering trees and preserved ruins of a fortress in the distance.

Moreover, the strategy of Berlusconi s ruling center right Casa della Libertà coalition has been to tread water and wait for Europe s economy to pick up instead of tackling Italy s structural difficulties.