Economic engines of the world are on freeze since March when the COVID-19 lockdown was started. All economies including two largest economies of the world – both the US and China i.e. 28 trillion and 15 trillion respectively has got the lowest growth in history. Due to COVID-19 Big economies like Germany and France shall be experiencing not only slow growth but negative growth in different sectors. The same goes with the UK and other EU countries. India – one of the large economic engines has also become slow and shall be slow in the coming year as the forests for more job losses are on the way.
Worldwide big industries have suffered big losses like the Aviation Industry is registering losses of around 3200 Billion Dollars in the same way the Tourism Industry of the worth of US 2700 Billion is also sinking and it’s taking a huge number of businesses and jobs related with it. In China 4.80 million large and small factories have closed due to no demand for goods and services worldwide. This is not a simple juggle of figures. This is a crisis far above than any man can think of. It’s the first time in the history of mankind that humans are going to face a debacle of such a mountain of economic imbalance in its history. Millions and millions are falling below the poverty level. There are 6.40 million patients are there in the world and out of that, around 500,000 have already died.
There was a choice before the world leaders to save economies or to save human lives. And naturally, they went for the second one and they have saved a lot of dying by closing all economic activity on the earth. Yes, it has got huge impacts on wellbeing of humans in a negative way but shall have positive also on the health of Mother Nature. There used to be around 600,000 flights per day in the world before COVID-19 pandemic which have been seized, millions of vehicles have become idle, millions of factories closed and all human activity comes of halt leading to pollution levels to a minimum to the levels of pre-industrial revolution era. It was needed badly to give an opportunity to Mother Nature to correct the balances of elements in this Earth which we have got imbalanced in years of our so-called economic growths. NASA pictures show much cleaner earth than the pre corona irruption. Corona has got to fix for the earth and Mother Nature may be to get the disturbed weather and environment of the earth to the normal module which has been pushed to abnormal due to irresponsible behavior of us humans. We cut jungles, polluted air, polluted earth with chemicals, and devastated environment of North and South Zones where ice glaciers are melting and sea level is increasing and getting unscheduled weather and hurricanes and floods on earth.
But on the economic front also where it has got a lot of challenges for the entire population it is to create a lot of opportunities by shaking economies of the world. It is to break the stagnation and bring more innovations in physical as well as financial products. Like world wars got challenges and humans had to invent different products on the principle of necessity is the mother of innovation.
The Middle East- the whole new world was developed because of one innovation- the air conditioning system. Without air conditioning there had been no development in the Middle East – no multi-story buildings, no financial institutions, no clubs, no big hotels, no recreations, no big car showrooms and no picnic spots for the visitors from the world in the hot desert where at times only death was living alive.
In the same COVID-19 has set a challenge for human beings not only on physicals products fronts but also on financial vehicles fronts. It shall change the world to 180 degrees. Lifestyles shall be changed. More broadband shall serve than the wide highways because work shall be done from home. Spadework shall be the job of robots and humans shall only be creating ideas and manners to work for machines. Even the agriculture shall become more sophisticated than ever by the use of drones for sprays and automatic machines for harvesting with the widespread of 5 G technologies. Courier deliveries shall be improved with the use of more drones, medical facilitation shall be changed with remote diagnosis and medicine subscription and delivery. In the same way, education, banking, services, tailoring, construction, and almost all industries are going to improve a lot. The automobile industry shall register an Enormous change from a radicle transformation of petrol and diesel to electric and hydrogen cell and internal combustion cars whose only emissions would be water vapors. A cleaner and greener world is ahead, with more choices, more freedom to work, and a more colorful life with less fear, less disruption, less interference, and less noise – quieter and calmer world. The ideal world is the world of ideas and ingenuity. The lovely world is ahead.
But the question is how to launch ourselves to that lovely world from the deep bog that corona has created to awake us from the comfort zone to set for the higher world Almighty has destined for humans.
That needs strategic planning on part of Govt institutions, especially the financial regulators. Having understood the economic difficulties we need to come up with the financial vehicles that could get us out of the mud at a rapid pace. The regulators shall have come up with unconventional thinking and methods. They should adapt positive approach and preach harmony, instead of spreading hatred. The regulators shall have to be with the relaxed and easy options and fewer stigma cycles which normally a regulatory mind thinks of. The financial institutions shall have to trust the public and shall have to increase the limits of the immigration of businesses. Let the people develop the financial products instead of you develop for them with your colorful models which normally do not work because they are not aligned with the values and cultures of different social systems in different countries. Like a very documented economic and financial system may be a practical approach in France but it cannot simply work in Pakistan where 70 percent economy is undocumented.
Large businesses are not the answer to attain the objectives of peace and stability in the world now. We need to go to the basics. The basics always work in complex situations, rather in complexities and abnormalities, only basics work better. And small is always beautiful. We need to go back to basics and to smalls. Support small businesses and big ideas. You need to empower SMEs and encourage entrepreneurship. That’s the answer.
Encourage small businesses. Give them free of interest loans, support new ideas, support the business ideas which can engage more people smartly. Encourage manufacturing and software. Trust on people. Let them do business and do not ask technical and complex questions of business failures.
In a study, the Harvard Business School had come up with the findings that there are more entrepreneurs in the US because there is no fear of failure. So get that idea and implement it in all countries.
Economic stimulus packages by Govt like Germany has started should be followed by all. Give funds to households and people to spend to give economic growth a reason to flourish and give support to people who wants to travel in the world for visits. For example, the UK Govt should offer anyone who shall come to the UK for 10 days visit and shall 10,000 here the UK Govt shall give him an incentive voucher of 1000 to promote tourism.
Govt must encourage people to come up with business ideas and get loans on very soft terms so that more people should be inclined towards businesses than jobs. Encourage the slogan to start a business than to look for jobs.
In the developing countries banks, on a war footing basis, make special credit facilities for small businesses not only to existing businesses but to greenfield projects. And eliminate the dishonesty and fear of failure both – very effective mechanics that should ensure that funds shall be spent properly and second in case of failure there shall be no consequences but the individual shall be supported to get out of the situation with both financial assistance and expert advice. Should the banks disburse more to right people there shall be very few that are not trustable and on an overall average, there shall be huge sums of profits and employment in the economies.
Govt should work in collaboration to enhance import and export industries amongst nations. That shall open not only new business ventures but also shall give a boost to world economic activity. Trade officers in the economies must collaborate neutrally to boost business and travel.
The innovation, the businesses, the economies of trust, and the Govt. supports shall lead the way to a peaceful and colorful and green new world.