Economic Crises: Survival of the
fittest
By
OLABANJO SHAFII
So_olabanjo@[Link]
08025493572
Critical Questions –
Are we prepared for war?
Are we willing to take risk?
Do we want to take care or take charge?
Are you a wanderer, follower, achiever or leader?
Are we willing to invest in others?
Can we create a win-win relationship?
THE HIGHLIGHT
INTRODUCTION
INTRODUCTION HOW
HOW FAR
FAR CAN
CAN WE
WE GO
GO
CAUSES
CAUSES OF
OF GLOBAL
GLOBAL
ECONOMIC
ECONOMIC CRISES
CRISES COPING
COPING STRATEGIES
STRATEGIES
EFFECT
EFFECT OF
OF GLOBAL
GLOBAL CONCLUSION
CONCLUSION
ECONOMY
ECONOMY CRISES
CRISES
WHAT
WHAT DISTINGUISH
DISTINGUISH
THE
THE FITTEST
FITTEST
Introduction
Crisis is a common factor in every organization and its management is what
determines the resultant effect.
Economic crisis has always been a serious challenge to the economists from
time immemorial- What to produce, how to produce and for whom to produce
The world economy is currently in a crisis, no economy is particularly
insulated due to the interconnectedness of the global economy, except that its
effects and management differ across countries
In 1980-90s it was the Asian Tigers (Thailand, Taiwan, Malaysia,
Singapore, ) with an average of 6% growth rate
Now it is “BRIC” economies that are the fast growing economies with
growth rate of 8-9% (Brasil, Russia, India and China)
What affect a nation has multiplier effect on the populace being an integral
component of every nation.
Tough time doesn’t last but tough people do
CAUSES OF GLOBAL ECONOMIC
CRISIS
Financial greed
Financial Speculation
Money meltdown (seigniorage of fiat money)
Burst of housing bubble in the West
Associated Causes:
Increasing Energy cost
Increasing Military and security costs
High Social security bills
Joe Wright’s Moral and spiritual hypothesis
MORAL AND SPIRITUAL
CAUSES
Minister 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.
MORAL AND SPIRITUAL CAUSES
We have killed our unborn and called it choice.
We have neglected the discipline our children, and called it
building self esteem.
We have abused power and called it politics.
We have coveted our neighbour's possessions and called it
ambition.
We have polluted the air with profanity and pornography,
and called it freedom of expression.
We have ridiculed the time-honoured values of our
forefathers and called it enlightenment.
Search us, Oh, God, and know our hearts today; cleanse us
from every sin, and set us free.
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: [Link]
Effects of Economic Crisis
• A world recession (Not a normal recession)
• A depression?
• Construction industry and financial markets particularly
affected
• Widespread unemployment worldwide
• Serious inflation - hyperinflation
• Price of grains and foodstuff
• Oil price moderate increase
• Crime and social breakdown- cyber crime
• Global chaos and conflicts
- Greenspan’s Age of Turbulence ?
• Likely wars
WHAT DISTINGUISH
THE FITTEST?
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 the
crisis.”
When the going gets tougher the tougher gets going
Only the fittest can survive the crisis because they are
the tougher.
WHAT DISTINGUISH THE FITTEST-
Cont’d
1. Clarity 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.
Fulfillment comes from
purpose. Life without
purpose is drifting.
A person who has no
purpose will never
persevere and will never
be fulfilled.
Building Life changing goals
Look within you- What do you feel
Look behind you- What have learned
Look around you- What is happening
Look ahead you- What is the big picture
Look above you- What is your expectation
Look beside you- What do you feel
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.
When we are exhausted, quitting
looks good. But winners endure. Ask
a winning athlete. He endures pain
and finishes what he started. Lots of
failures have begun well but have
not concluded anything.
Commitment starts
in the heart-some
people want
everything to be
perfect before they
are willing to commit
themselves to
[Link]
commitment always
precedes
achievement
Commitment is tested by Action. It is
one thing to talk about [Link]’s
another to do something about it. The
only real measure of commitment is
ACTION.”Nothing is easier than saying
[Link] is harder than living them
day after day.”
3. Setting Priority
Success is progressive realization of
worthwhile set goals. The twin of priority
is self discipline, which is the price tag of
leadership. Leaders can not take others
further than they have taken themselves.
You have to lead yourself to lead others.
Efficiency is doing things, while effectiveness
is doing the right thing. Efficiency is the
foundation of survival but effectiveness is
the foundation of success.
4. Team Work
“You can lose with good players,
but you cannot win without
them.’’
5. Attitude
“Every problem has a solution,
only if we perhaps change our
attitude.’’
Your attitude determines your altitude in
life.
How Far Can You Go?
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.
Coping strategies (Expenditure Control)
Have financial discipline and Prepare monthly budget
(Control over your expenditure profile and enhance your
income potentials)
Know your financial limits/ budget constraint
Avoid impulse buying/consume only necessities/wastage
and extravagance
Our consumption exhibits ratchet and demonstrative
effects, don’t increase your expenditure on every
marginal increase in income
Avoid contracting consumption loan but only investment
loan
Coping Strategies (Enhancing Income
Potentials)
Enhancing your skill (training and new skills)
Exploration of new ideas
Diversification
Investment: Feasibility studies, pooling resources,
forming partnership or companies
Other sectors: Agriculture, Transportation, Real Estate,
General Merchandise, Chemical and Allied,
Pharmaceuticals, Manufacturing
Investment club as a Coping strategy
A group of people who pool their funds together for
viable investment
Mutual fund and Investment club
Outlets: stock market crash and other outlets
especially real estate , services with fairly inelastic
demand
Mudarabah and musharak and other
Diminishing musharakah
Conclusion
20% of the world population own 80% of the world
resources, high income inequality
The wave of globalization has made every economy
susceptible to shocks, no economy is insulated from it.
Its management depends on the structure of the
economy and the willingness of the managers to
mitigate its effects on the populace.
No one can change your economy situation expect you
are ready and willing to change it your self
THANK YOU FOR YOUR
ATTENTION
