Economics Crises;Survival Strategies

8/8/2019 Economics Crises;Survival Strategies

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By

OLABANJO [email protected]

08025493572

Economic Crises: Survival of the

fittest


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Critical Questions

y Are we prepared for war?

y Are we willing to take risk?

y Do we want to take care or take charge?

y Are you a wanderer, follower, achiever or leader?y Are we willing to invest in others?

y Can we create a win-win relationship?


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THE HIGHLIGHT

INTRODUCTION

CAUSES OF GLOBAL

ECONOMIC CRISES

EFFECT OF GLOBAL

ECONOMY CRISES

WHAT DISTINGUISH THE

FITTEST

HOW FAR CAN WE GO

COPING STRATEGIES

CONCLUSION


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Introduction

y Crisis is a common factor in every organization and its management is whatdetermines the resultant effect.

y Economic crisis has always been a serious challenge to the economists from timeimmemorial-What to produce, how to produce and for whom to produce

y The world economy is currently in a crisis, no economy is particularly insulated dueto the interconnectedness of the global economy, except that its effects andmanagement differ across countries

y In 1980-90s it was the Asian Tigers (Thailand, Taiwan, Malaysia, Singapore, ) with anaverage of 6% growth rate

y Now it is BRIC economies that are the fast growing economies with growth rate of8-9% (Brasil, Russia, India and China)

y What affect a nation has multiplier effect on the populace being an integralcomponent of every nation.

y Tough time doesnt last but tough people do


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CAUSES OF GLOBAL ECONOMIC CRISIS

Financial greed Financial Speculation Money meltdown (seigniorage of fiat money) Burst of housing bubble in the WestAssociated Causes:y Increasing Energy costy Increasing Military and security costsy High Social security billsy Joe Wrights Moral and spiritual hypothesis


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MORAL AND SPIRITUAL CAUSESMinister Joe Wright recently gave the following as moral and

spiritual reasons for the crisis:

o We know Your Word says, Woe to those who call evil good, but

that is exactly what we have done.

o We have lost our spiritual equilibrium and reversed our values.

o We have exploited the poor and called it the lottery.

o We have rewarded laziness and called it welfare.


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MORAL AND SPIRITUAL CAUSES

y We have killed our unborn and called it choice.

y We have neglected the discipline our children, and called itbuilding self esteem.

y We have abused power and called it politics.

y We have coveted our neighbour's possessions and called itambition.

y We have polluted the air with profanity and pornography,and called it freedom of expression.

y We have ridiculed the time-honoured values of ourforefathers and called it enlightenment.

y Search us, Oh, God, and know our hearts today; cleanse usfrom every sin, and set us free.


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America has a total debt of $53 trillion and the highest debt ratio in history$175,154 per man, woman and child

or $700,616 per family of four

Source: http://mwhodges.home.att.net/


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Effects of Economic CrisisEffects of Economic Crisis

A worldA world recessionrecession (Not a normal recession)(Not a normal recession) A depression?A depression?

Construction industry and financial markets particularlyConstruction industry and financial markets particularly

affectedaffected

Widespread unemployment worldwideWidespread unemployment worldwide

SeriousSerious inflationinflation -- hyperinflationhyperinflation

Price of grains and foodstuffPrice of grains and foodstuff

Oil price moderate increaseOil price moderate increase

Crime and social breakdownCrime and social breakdown-- cyber crimecyber crime GlobalGlobal chaoschaos and conflictsand conflicts

-- GreenspansGreenspans Age of TurbulenceAge of Turbulence ??

LikelyLikely warswars


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WHAT DISTINGUISHWHAT DISTINGUISH

THE FITTEST?THE FITTEST?


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THE FITTEST ARE NOT SUPERMEN NOR DO THEY HAVE

TWO HEADS

The only difference between extra-ordinary person

and ordinary person is- extra effort, If you can take

extra effort, you can also be the fittest and survive thecrisis.

When the going gets tougher the tougher gets goingOnly the fittest can survive the crisis because they are

the tougher.


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1.1. Clarity of Purpose and GoalsClarity of Purpose and Goals

The motivation to succeed comes from the

burning desire to achieve a purpose. Napoleon

Hill wrote, "Whatever the mind of man can

conceive and believe, the mind can achieve.

We need to understand what exactly we want.

WHAT DISTINGUISH THE FITTESTWHAT DISTINGUISH THE FITTEST--ContdContd


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Fulfillment comes from

purpose. Life without

purposeis drifting.

A person who has no

purpose will never

persevere and will never

be fulfilled.


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BuildingLife changing goals

y Look within you-What do you feel

y Look behind you-What have learned

y Look around you-What is happening

y Look ahead you-What is the big picture

y Look above you-What is your expectation

y Look beside you-What do you feel


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2. Commitment

This separates Doers from Dreamers.

It is the hallmark of all success.

Commitment is giving all is required to

achieve a stated goal. Persistence is a

commitment to finish what you start.


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When we are exhausted, quitting

looks good. But winners endure. Ask

a winning athlete. He endures painand finishes what he started. Lots of

failures have begun well but have

not concluded anything.


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Commitment startsin the heart-some

people want

everything to be

perfect before they

are willing to commit

themselves to

anything.Butcommitment always

precedes

achievement


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Commitment is tested by Action. It is

one thing to talk about commitment.Its

another to do something about it. The

only real measure of commitment is

ACTION.Nothing is easier than saying

words.Nothing is harder than living them

day after day.


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3. Setting Priority3. Setting Priority

Success is progressive realization ofSuccess is progressive realization of

worthwhile set goals. The twin of priorityworthwhile set goals. The twin of priority

is self discipline, which is the price tag ofis self discipline, which is the price tag of

leadership.leadership. Leaders can not take others

further than they have taken themselves.

You have to lead yourself to lead others.


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Efficiency is doing things, while

effectiveness is doing the right thing.

Efficiency is the foundation of survival but

effectiveness is the foundation of success.


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4. Team Work4. Team Work

You can lose with good players,but you cannot win without

them.


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5. Attitude5. Attitude

Every problem has a solution,only if we perhaps change our

attitude.


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Your attitude determines your altitude in

life.


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How Far Can You Go?


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How Far Can You Go?

-The journey of 1000miles start with just a

step.

- What the mind can conceive, the mind

can achieve it.

-Few things you can do, but many things

you cannot do. God is not a magician, He

will not do what you cannot do for you,

until you do what you can do.


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Coping strategies (Expenditure Control)

Have financial discipline and Prepare monthly budget (Controlover your expenditure profile and enhance your incomepotentials)

Know your financial limits/ budget constraint Avoid impulse buying/consume only necessities/wastage and

extravagance Our consumption exhibits ratchet and demonstrative effects,

dont increase your expenditure on every marginal increase inincome

Avoid contracting consumption loan but only investment loan


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Coping Strategies (EnhancingIncome

Potentials)

y Enhancing your skill (training and new skills)

y Exploration of new ideas

y Diversification

y Investment: Feasibility studies, pooling resources, formingpartnership or companies

y Other sectors: Agriculture, Transportation, Real Estate,General Merchandise, Chemical and Allied, Pharmaceuticals,

Manufacturing


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Investment club as a Coping strategy

y A group of people who pool their funds together for viableinvestment

y Mutual fund and Investment club

y

Outlets: stock market crash and other outlets especiallyreal estate , services with fairly inelastic demand

y Mudarabah and musharak and other

y Diminishing musharakah


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Conclusion

y 20% of the world population own 80% of the worldresources, high income inequality

y The wave of globalization has made every economysusceptible to shocks, no economy is insulated from it. Itsmanagement depends on the structure of the economy andthe willingness of the managers to mitigate its effects on thepopulace.

y No one can change your economy situation expect you areready and willing to change it your self


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THANK YOU FOR YOUR

ATTENTION

Economics Crises;Survival Strategies

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Transcript of Economics Crises;Survival Strategies