Economic Recession: A Psychological Slowdown

The world today is strongly affected by the “global recession”. The recession which seems to have taken the world by storm is believed to have started with a small speculation on the part of an American bank, which decided to ask for interest on a loan it had given to one of its customers. The failure of the individual to repay the required amount led to further troubles just like a pyramid of cards falling because of one card slipping out. One delay lead to another and so on, resulting into the fall of share prices in NYSE and NASDAQ. The rest, as they say ,is history. The recession has struck the developed countries around the globe but chiefly the financial backbone of the world—America. The country was shaken economically. However the slowdown in the rest of the world including India is a mere result of false assumptions leading to the downfall of shares market in India as well. We see ourselves directly connected to the Global thereby American economy, thus believe that their economic downfall leads to ours.

The truth, however is far removed. It would not be totally correct to say or assume that the recession is completely global. It is not. Where the developed countries are facing the economic slowdown, the developing countries actually have a “blessing in disguise”. India and China in specific. The economics experts of the country predict a plausible financial development provided the government takes the required steps.

Going through an economic instability, U.S will look for outsourcing in many fields of work. For this, it will turn to the Orient nations and primarily India, which has been running BPOs for quiet some time now. But in order to ensure that we get these businesses we have to be prepared. The government must lay a special emphasis on the infrastructure of the country. More corporate structures should come up with the state of the art facilities and latest in the IT. This step can ensure that whenever the opportunity comes we are well prepared. Many people believe that this is the downfall of BPOs. This is a myth, now is the time when this sector would be for an all time boom. U.S needs its work done but does not have enough funds to pay within the country. They can get the same work done via outsourcing at a lot lesser cost or the residual cost. Thus, the BPOs are a favourite option for them.

Another field which the government needs to pay a close attention to, is that of education. Education must reach far and wide, to every individual across the country. The future of the nation depends on the education that the youth is imparted today. Basic knowledge can help them make use of the opportunities that may come their way during this period. The BPOs will require a lot of manual labour thereby bringing employment opportunities for many. But in order to avail these opportunities the applicants must atleast have the basic education. Hence, the need to improve this field.

Economists believe that a positive development in these two sectors can help the country make most of this situation. Also, we need to be ahead of competitions. China is all geared to prepare itself for the required changes and may soon be playing host to various BPOs. If we wish to be in the race, then the government must pull up its socks and take immediate and effective actions.

Ekta Rai

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