The COVID-19 pandemic has spread with alarming speed, infecting millions and bringing economic activity to a near-standstill as countries imposed tight restrictions on movement to halt the spread of the virus.
The economic damage has been very evident and represents the largest economic shock the world has experienced in decades.
The June 2020 Global Economic Prospects describes both the immediate and near-term outlook for the impact of the pandemic and the long-term damage it has dealt to prospects for growth.
The baseline forecast envisions a 5.2 percent contraction in global GDP in 2020, using market exchange rate weights the deepest global recession in decades, despite the extraordinary efforts of governments to counter the downturn with fiscal and monetary policy support.
Over the longer horizon, the deep recessions triggered by the pandemic are expected to leave lasting scars through lower investment, an erosion of human capital through lost work and schooling, and fragmentation of global trade and supply linkages.
The COVID-19 Pandemic has taken a toll on many businesses and the Construction sector is no exception. At the Consultants’ level, the general feedback has been that Investors in the Real Estate sector have gone on to a “Wait & See..” policy, not least because of the delay in the introduction of a veritable and effective Vaccine and the apprehension as to when the people of Africa may actually be able to lay their hands on it!
Worldwide, all Economies are attempting a tight rope balance between caution and prevention on the one hand (‘let us keep all vulnerable and susceptible sectors locked down.”) And acceding to the Popular and essential needs vote (please let us open up everywhere now). Indeed, there is a limit up to what stage in a Country’s Economic annual life span can the standards of living be stretched? Ultimately, it has to be sensible living and Alas, each unto himself!
No one knows where each year will take us, and this was most apparent from March 2020 onwards. The age old truth older than the Mountains, is and will remain, is that the only thing permanent in life is Change itself! Scary to say the least.
However, this is where I would say the Wise may differ. Honesty, Integrity, Goodness, Sincerity, Empathy, Generosity, Humbleness, and all in all a good intention and demeanor to the fellow human being are all those age -old adages that are eternal!
More specifically applying these to our day to day living activities, and our businesses, all faculties of Management need to go back to the basics; stop counting your gains, stop trying to maximize your Margins, and share of Markets. Look instead towards the” little things”.
Go back to Basics, are your Employees safe, are your Overheads in reasonable control, are you willing to weather this storm out together with your Greater Corporate Family, are you willing to sustain the losses, and yet meet your cash flows, are you looking to add value to all the stakeholders’ lives, redefine your personal as well as Corporate Goals, go the extra mile for the larger Body of the Organization?
While processes and procedures can be changes/modified, these basic fundamental principles hold true over the Centuries! As a paint manufacturer, we are so humbly appreciative and grateful to see these very Ethos work so well for us.
Mr. Kamlesh Shah is the MD, Basco Paints
The views expressed in this article don’t necessarily represent KBC’s opinion.