Mar 11
4
Thrust to the Economy
It has been almost two years since the start of the recession and the slump in the market all over the world. Trade around the world diminishing to minimal while prices of necessities rising sharply. The recent turmoil and political upheaval in the MENA region has caused more concerns over the recovery of the economy on a macro level. Though analysts might see a growth in the market looking at the indexes of trade houses but it does not really expose the reality and the ground level scenario where most of the people are not even aware of what a stock exchange is.
Oil prices have hiked to record highs in the history of mankind and as the MENA region, especially countries like Libya still having political constrains it cannot be predicted to what, highest peak the oil price finally reach. That said, most of our economical situation are now relying on oil as an energy source, the fossil fuel has caught human kind into a tight glitch.
During these though times it is the government’s role to ease and promote small scale industries and small businesses rather then trying to bail out giants on the costs of the near to getting unemployed common citizens. It would be more wiser for any government to ease the process of setting up small businesses and helping it reduce over heads in terms of fees and certification processes and so on, let the business create further employment opportunities and wider get more market share. It would be more wiser for the authorities to back businesses that grow and develop on non-borrowed capital rather then depend on banks and financial institutions for liquidity. Such borrowing would not only rise overheads and add to costs of commodities but add uncertainty in the stagnant market.
There are times when businesses can afford perfection and there are times when costs need be considered for the growth of an economy from a macro level.
How unwise would it be for authorities to simply issue fines and levy illogical fees and charges to fulfill their extravagant needs and expenses. If businesses are hit by fee hypes in accomplishing the legal aspects of running it, they will either pass-on the costs to the end user or cut down on operations by simply shifting to more preferable places. The most annoying of any additional overhead that a business could bare is the implementation of hidden charges which are levied every now and then. If the authorities do not consider setting up proper measures to its own act of ignorance, it would result in hurting the economy of the country at the end of the day.
