Is recession a financial disaster?
There is no denying that the origin of all recessions was in the USA with the collapse of businesses like Layman Brothers and Real Estate in Germany. The economy which hitherto overheated is showing signs of cooling down causing reverberations across the world. How long will it continue is a matter of debate. Pessimists say that it may take more than two years; optimists say that it may take only a year and the realists assert that it may take two years to come out this threat.
The Second World War brought a lot of destruction to mankind. It also ruined the world economy. But it resulted in several technological innovations that brought comforts to mankind. Similarly, the current meltdown will bring fruits to mankind in several ways although there will be pain for some time. But the pain is worth bearing to enjoy the fruits.
In Bangladesh more or less, all sectors have been hit by slowdown. Real estate, tourism and RMG sectors are badly hit. Fortunately, some sectors in Bangladesh have not been hit such as banking, food sector etc., The Bangladesh Bank has been stringent in its regulation and it has helped to overcome the meltdown in the banking sector. Currently, there is a decline in exports in agriculture and food processing sectors which is a matter of grave concern. However, good monsoon can check the slowdown.
Organizationally speaking, recession is a threat for scroungers not a threat for workaholics. Rather workaholics are a threat to recession. Recession separates men from boys. It differentiates between chaff and grain. It clearly shows who are the real performers and non-performers. Non-performers, wake up! It is time to mend their ways or else they will be fired. Recession is a wake up call for non-performers.
Companies are now looking for silly reasons to fire the people in the name of indiscipline. In fact, it is not due to indiscipline or lack of performance but because of recession. It is a retrograde step and brings down the image of the organizations.
Recession builds bridges among the families who until now have been separated by barriers due to work pressures. It connects people emotionally. It checks attrition. It provides breathing space to the tired people. It takes out the pressure and injects pleasure for the people.
Recession is not new and we have faced it several times in the past and survived. We would survive this time also. With the growing technology the media is highlighting recession too much thus worsening the situation further. Recession is existing but not as much as it is being overplayed.
Innovative measures to cut down expenses and enhance productivity. Unconventional and out of the box thinking approach is essential. There should be insurance coverage for recession as well.
Bangladesh's economic growth and exports remain quite strong. Nevertheless, precautions are always to be taken to avoid big economic disaster.
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