Saturday, 26 September 2020

Building Resilience -3 Economy and Society

 

In the second part of my musings on Resilience, I had cited Insurance mechanism as an example as to how an individual or a business enterprise can build up financial resilience capacity in the aftermath of any crisis or shocks.  This had evoked many responses from readers . They voiced their issues faced with Insurance companies as regards their Life or Health Insurance policies and claims.

[Some have suggested that there is an urgent need for disseminating Insurance knowledge and clear the doubts and misperceptions of public on Insurance products, Claims and related issues.  I intend to take up this  need soon in a separate blogspace.]

Digital Technology and Economic Resilience

My thoughts on Resilience wandered into Economic and Societal Resilience in these times of Global Crisis.  Coincidentally or so, I am seeing all round discussions on  -Restart – Rethink – Reshape – Reimagine – as many paths leading to Resilience.

Technology has taken the priority tool or approach in all aspects of work and life.  I was asking those who were working from Home (WFH).  For many meant meetings, discussions, Presentations via any of the Video chat applications throughout the day; the remaining time being spent on replying to emails.  On the home front, Online orders of Vegetables, Groceries, Medicines and what not…. affordable families have adapted to this new way of dealing with their essential and non-essential consumptions. Other have curtailed their consumptions to make both ends meet.

Microsoft, in their front-page advertisement in Times of India yesterday had a slogan “Let’s build resilience” and highlighted several digital technology solutions.

“Students and Teachers are meeting in virtual classrooms, doctors are tele-consulting patients, business deals are being closed over video calls and virtual agents are providing customer support”

Four of the digital and technology solutions in the front on economic resilience (highlighted by Microsoft Advt.,)  are worth mentioning here   Cloud migration to rapidly scale up operations, Rapid adaptation of automation, Remote but connected team of employees, and retrained work force with digital capabilities.

Social inequality and Resilience:

Social inequality has its impact on stability and resilience of economies and societies.  Former US President Barack Obama had stated that rising “Social inequality” is one of the “defining issues” of our times.  Pandemic Covid has amply showcased this “income and wealth inequality” in every country, with associated cascading impact on all economic activities, employment and on business viability. Inadequate primary and secondary Health care infrastructure is the root cause of still uncontrolled spread of the virus.  Even available healthcare infrastructure is not easily affordable.

Almost all the Governments have addressed Covid 19  crisis by Lockdowns and curtailment of movement within the country as well as outside, announced economic stimulus measures and freebies. These efforts, continuing, are found to be insufficient.

Need for Synergic efforts

There is an urgent need “synergy” of efforts being made by individuals(families), businesses and Governments.

As the “micro unit”,  an individual’s resilience capacity to any crisis situation, incident, or event he faces in his income earning capabilities, is directly linked to “income and wealth inequality”.  This is true for Business and Commercial enterprises as well. Private and Public Financial institutions should continuously make all round efforts to enhance ‘financial literacy’ of individuals and families.

Legislators and Policy makers should frame programmes to holistically address various steps to build Economic and Societal Resilience capacities.

Directive principles of State policy in Indian Constitution directs the Government and Policy makers to make laws and regulations

..….to secure the right of all men and women to an adequate means of livelihood;  …….ensure that operation of economic system does not result in concentration of wealth, …….to secure to workers a living wage, humane conditions of work, a decent standard of life… 

India need to enhance its Policy framework to provide for subsidy or allowances to individuals and families during any livelihood threatening economic crisis.  . In Governance, this “right to livelihood” issue must move to centre stage to build Societal and Economic resilience capacity.

No comments:

Post a Comment