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Corona virus: Reshaping Economy and Globalization

“The world is a great gymnasium where we come to make ourselves strong”, said Swami Vivekananda. The quote exhibits how human race is expected to embrace challenges presented by life. Life regaled human race with sundry adventures. It, however, had never expected the favor to be reciprocated. Today in this poignant time when the malady “Covid-19” has bounded us to be at home by the menace it has created, people seem to be baffled as it’ s countenance gets horrifying day in and out.
|| Shubham Sharma

It has compelled human race to perform in a different manner; contradictory to the previous functional patterns that were adopted in abundance. Economy and Globalization has witnessed a major hit due to COVID19 where the already existing frameworks seem tremble with time. The world already had dealt with severe economic recessions and accepted various trends to overcome from such position – funding from financial institutions being one of them.

With the redefined norms to the functionality of organizations and to the basic methodology many firms has taken a different form now. Traditional ways are forsaken and adaptation of the new technologies has began with time. Workplaces shifted from bricks and mortar to data and insights leading redesigning of commercial spaces.  With increasing worldwide disturbance monetary transactions are considerably very less; the resources are not well deployed as for instance here in India a major portion of the workforce pertaining to construction sector has migrated to their hometowns. This leads to many a construction projects forsaken and awaits to be restarted; also the money involved in the projects is poorly utilized. This is a fact that we live in a economy where a majority of population runs for basic necessities before any other thing they can really afford. In the times of complete chaos, although government would supply essentials, they seem perplexed on people returning to workplaces as they are terrified of the repercussions to be delivered by the ghost called COVID19. Remembering the time after World War 2, we recall how whole system trembled when ghastly incidents occurred: loss of life and resources to name a few. The promulgation of innovation and good practices hampered at that time; left many a people in dismay. Understanding the gravity of today when a large number of populace is hit by it, loss of life and health, supply and demand chain is adversely disturbed as now many business entities seem baffled and waiting for positioning of their products to the customer they target. Saying it in a sentence: “All one could see is a one long dark tunnel with no end in sight”. Experts and professionals continuously focus on motivating people so that they get encouraged, take proper hygiene measures and return to the workplaces. Today in the period of global recession remunerations are reduced and organizations expect few people in workforce than before; leading poor job security. In the continuous quest for self satisfaction, it is open and accessible that we have not delivered, majorly, considering globalization as priority. Repercussion of which the trends that could have established their firm routes ages before are yet to be introduced. Online meetings were considerably ignored and employees did not readily promoted innovation rather depend on standards that exist. Take any sector; construction sector for instance, contributes at a large number to our nation’s economy and provides a great employment opportunity. The construction activity involves a labor and goes up to client in a hierarchy based on different position; all are hit by the pandemic as they incurred a huge monetary loss. People would hunt for things that are now under estimated- manpower to be the one. The time has begin when organizations will look for manpower at lower wages signifies adjustment would be done in quality of the deliverables. Material that was easily procured to site holding proximity to workplace would be adjusted with some inferior quality material. The owner of asset would grouse about less capital investment and other funding and financing issues- spending less for waste management and site facilities. These all are leading indicators to trembling economic growth.

Yes, the ‘amorphous enemy’  is now at the zenith and considered to reach climax really soon. Including the great looses presumed by the human race some of it’ s effects are yet to be quantified.

They say ‘survival of fittest’, no I say ‘ survival of quickest. Yes, only who will adapt to the trends would survive in the scenario that is well described above. You create opportunities amongst the chaos and surge as winner in the end. The more quick is the response the lesser the chances to get swept of the league. Cash is considered as king in an economy that should be dealt properly and one must not be prodigal. A large capital investment is required, money need to be pumped in system to reinstate business; so, financial institutes should lend money to gamers that have potential to drive economy high. Poorly managed assets must be managed to safeguard against getting futile; deployed at a place they truly belong. This experience could permanently change habits that may affect demand for quick assets – real estate assets. This time has greatly magnified the importance of digitalization rising demand of digital workplace. We see how trends are changing and enforcing innovative digital technologies giving more power in hands of man. Government of India has already promised to avail support to Micro Small Medium Enterprises(MSME) promulgating huge capital investment. The ‘surge storm’ has defiled people’s will power to spend and has lead to poor economic growth. By the help of collaborative team efforts performed by government, financial institution and big gamers we shall resurge stronger; thereby, having potential to spend and assure money circulates across the nation. Qualified professionals are now highly in demand to as to reinstate economic cycle, the advice and actions performed by them would be highly acclaimed.

Now let us do a SWOT analysis to understand where the Strength, Weakness, Opportunity and Threat exist pertaining to economy and globalization due to COVID19 will analyzed. This would exhibit a clear picture on where we stand and where we are heading to. Moreover, this may work as recommendation tool that holds value in it’ s own.

Strength:

  • The existing workforce, professionals and employees who are diligent to serve for the betterment of economy.
  • The resilience and courage that we possess would definitely prove to be conducive for a great come back
  • Human population has a survival instinct as we already has embraced many havocs since ages. We came stronger out of various economic crisis and are capable of increasing equity to overcome this scenario.
  • The R&D department is our true strength as it continuously thrives for amelioration of global trends. It has benefitted us a great many time by the innovation it creates. Through R&D it is possible to promulgate great global practices amongst nations worldwide.
  • Government support holds a great value in order to reshape economy and globalization. Government should join hands with private venture firms and capitals to draw better economic outcomes. Government promoting stuff made in India to be consumed by public. This would pump more money to economy of India as the opportunity to work and consume would remain within boundaries and no extra taxes would be paid by business entities to import services, works or goods.
  • Past experiences regarding economic crisis would serve as lesson to draw learning to meet current economic issue. From military wars to civil wars and to other truculence the nation has seen it all and yet stands rigid like a strong wall to withstand calamity. The wall is severely rammed by the pandemic and has lead to economic issues, as discussed, the past experiences now come into play and serve as a solution to mitigate several economic risks.
  • India is expected to have a 34% share of youth population in the total population counting. Signifies the number of fresh and exuberant minds it has, youth will play a major role in it. Training youth and empowering them to become leaders will create value to every firm. This would further result in standardization with more technical competencies involved in business.
  • The financial institutes work as the director and producer of the entire scenario; as they, with the help of government bodies and roles, will defines roles and responsibility of each stakeholder. They would fund projects and business to restart the demand and supply chain mechanism.

Weakness:

  • Conflicts of interests had always been a major issue causing delays in various economic activities involving a huge amount of capital. It hampers the growth and expansion of economic cycle thereby reducing chances of technology and innovation to reach the population where it truly belongs.
  • Politics influence a nation as a whole and at times of COVID19 each decision can contribute to worsen already rising economic issue. Government has taken various steps that went contradictory to the affect expected; resulting losses to various economy riders especially private firms.
  • Migrated population seems not to return easily to the workplaces in the foreseeable future. In an interview a poignant labor said “I will never return to a place where I was kicked out at time when I needed the organization most”. They are willing to cultivate their fields instead to work in metro cities again. This would create a shortage of workforce as a result of which less skilled labor will be deployed to restart the work.
  • Already lost equity has made various players bankrupt as a result the business often seem to tremble from their end.
  • The end users complain to have less money to spend on prominent good. The affordable goods seem luxury items to them now as a result they would never spend more than the pocket allows.
  • Less training and education is provided in order to follow the norms circulated to overcome the pandemic. Many are still not aware of the ‘new normal’ prevailing in society leading the increase in cases day in and out.

Opportunity:

  • Virtual learning ,i.e., improved virtual workplace experience in business organization to fasten the economic process.
  • Easy access to Industry software; due to limitation to work from home, most of the firms have allowed their employees to use the software the firm uses with any computer of any type of configuration.
  • Reduced business travel; as commutation is not an issue now, remember such times when everyone feared of the technology and affixed to standards but now technology surge as a conducive tool to aid professionals in orders to withstand many economic challenges.
  • A great focus would be given to competencies and skill; as people will surely ramp up skills by getting benefitted by new normal. Now everyone will run to improve competency and become full-fledged in the domain they belong.
  • Not to forget business moving out of china may create opportunity for various commercial players across nation. The forthcoming opportunities are presumed to create a great value to many a business firms. This will jointly create employment opportunities and would give a required kick to the economic life cycle of India.
  • The experience could bring change in habits that may affect demand for real estate assets.
  • This will ramp up flexibility and potential related to adaptability in human race by clearly allowing them time for critical thinking.
  • Further post-COVID opportunity are
  • Investment of Rs 70,000 crore in housing and kick start sectors like steel, cement and create jobs.
  • Rs 1 lakh crore fund for strengthening the farm gate infrastructure like cold chains, post harvest storage infrastructure.
  • Rs 13,000 crore additional investment by private players in 12 airports.
  • All districts will have infectious disease hospitals.
  • Rs 10,000 crore fund for building micro food clusters.

Threat:

  • Negative press/media coverage is a big threat in such times. This creates chaos in public and hampers their ability to think critically. Media portrays other side of the tale more and conceal the rest to dilute facts. This would adversely affect many business activities. Media should also telecast other side of story thereby educating people regarding the ‘new normal’. This negative work exhibits poor picture of a nation worldwide and creates less chances to be funded by a big player sitting in a foreign nation.
  • Changing attitude of consumer towards business and trends that now exist would be a threat for sure. People are baffled regarding choices and are selective in their approach. They shall prevail for coming decades and organizations must take precautions to deal with the changing attitude and should target correct audience.
  • With the changing regulatory environment; the business players are obligated to work within restrictions given by the government i.e.; the limitations and constraints under which business has to run. For example: If government allowance says only 100 person should remain 9-5 at workplace; this would be followed strictly unless another law enacted by the government.
  • With the relaxation given by government to run business there is surety that it would lead to emerging competitors in the market. This is a big threat to small players who are new to the market condition. The big business magnets would totally hamper growth of these small market players.
  • Black opportunities ,i.e.; the plans existed before the COVID19 and were thought to emanate great results are now turning into black opportunities for many involved in economic cycle. For example: The investment made by a builder to create a facility in a metro city and the project was funded by a financial institute at a high interest but due to the COVID 19 the project gets abandon incurring the builder huge economic losses; isn’t it a black opportunity now that could be a golden opportunity if the situation was not the same.

In the culmination of the journey I would recommend to create a highly positive environment to see the opportunities well seized. As a one nation it is the correct time to evolve and make decisions that are economy oriented. Ask yourself a question:  It is easy and natural to yearn for perfection, but do we really thrive with the impact that is necessary to deliver an efficient output. Many studies suggest about economic development, however, we often leave knowledge as tacit and perform actions as per own convenient. As we battle to turn our surroundings economically sound, remember a lot can be learned from nations whose economy is crashed. Specialists say future is built on the foundation of the present, but do we really lay robust foundation to withstand future dilemmas. Now is the time to curb misgivings and make ourselves adroit to confront what we have contributed in economy and globalization. Consider ‘Mother Earth’ as home to all and display oneness – educate others, learn from experienced people and share past knowledge. Despite foreseeable problems in economic growth, though, we have solutions. All we need is to communicate, connect and learn from people. Collaborative teams should be formulated to uplift economy growth and hamper subdivisions that exist in society –  to promulgate the slogan of ‘BEING ONE’.

The writer is a Member of RICS School of Built Environment and reachable at sharmashubham703a@gmail.com, 8171115957

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