Together we can defeat economic recession

George Nhepera
ZIMBABWE and the rest of the world are under the greatest economic recession and Covid-19 induced economic and health negative effects. We have no choice as business leaders other than to quickly respond and come up with new business models. We can, however, look back and draw lessons from history and other countries to help ourselves come out of this current economic crisis. This is the context this business insights which is around the theme of economic recessions and likely proposed solutions.

Business Insight 1
In business, strive to be nobody but yourself in a world which is doing its best to fight the hardest economic recession battle which any human being can fight and never stop fighting. The only choice is for your business to survive, not to collapse and be erased from history. If it fails, then be always ready with your own plan B, a backup plan for a new company created to take advantage of new business opportunities created in our new “normal” business environment.

Business Insight 2
During the economic depression of 1930s, then US president Franklin Roosevelt coined these famous words “the only thing we have to fear is fear itself”. With this positive mentality in his mind, he went on to defeat the greatest economic depression in that time together with his business and political leaders in his country. It is about time we all embrace this mentality in our country lest we slide into high business failures, high unemployment and too many of us sliding into extreme poverty.

Business Insight 3
US president Roosevelt strategic intervention to the economic depression was modeled around the now coined “ 3 Rs” of dealing confidently with recession. Relief to the unemployed and their families, Recovery of the economy, Reform of the financial/banking sector and currency exchange rate system.

This is the current worldwide and time-tested solution being adopted in every country today, including our own country. It is about time that we come together in unity both Government, business, labour and citizens in support of our own home-grown intervention model guided already by the “3 Rs” of dealing head-on with economic recession……. Relief, Recovery, Reform.

Business Insight 4
Let’s talks in brief detail on one of our “3 Rs” for dealing head-on with economic depression which without doubt is looming in every country in the world today. Relief to the unemployed and vulnerable people in our society. Definitely such people need relief but in what form? Some think social grants and payment without work performed. Others think the best is food or payment for Government sponsored projects such as building schools, hospital, roads and other long-term community projects in both urban and rural areas.

In our view the second option is the best for they say an idle mind with no work to do but getting social grant may turn out to be less productive and a liability to the Government and the nation at large. However, the first option could be adopted only for a short-term period while planning is being made to graduate to the second option

Business Insight 5
Still talking about our relief for unemployed in Government sponsored projects to deal with looming economic recession, it creates jobs for many skilled people such as builders, plumbers, engineers, electricians, surveyors, carpenters, cleaners, food suppliers, accountants, administrators among others. Our returnees from South Africa and locals possess these skills; hence it will be good to provide such kind of relief with work performed. It used to be called “food for work” during the old golden times of 1990s and it worked perfect for everyone one.

It can work again today, especially when the Government is calling for three things . . . production, production, production.

George Nhepera is a Bulawayo-based banker and business consultant. Contact him on WhatsApp +263778149459, [email protected] for comments and discussions.