You do not need a war for placing a country on war footing when its economy is on steady course of nose diving. One aim of war footing is to uplift the domestic economy. The other one is to uptick fortunes in geoeconomics as regards to matters abroad.
The initial step is to increase public expenditure by at-least 35% more than what it is at present to give economy a real booster. The government screens sectors that could function as vital conduits for enhanced funding that can be put into effective use for jacking up much needed production. Sometimes governments need to be brazen enough to demolish existing structures and over these build novel ones that are modern and efficient. Building a hospital over the previously stood one is a good example.
Ensuring inflationary pressures do not snowball is a key paradigm. Therefore an optimum level of inflation must be pre-thought and incorporated in the calculations. Furthermore prices must not be allowed to soar beyond the means of average consumer. In any case new money introduced into economy usually has the tendency to drive the price higher than what it was before.
Consequently purchasing power increases when wages and profits are recycled into the hands of consumers who might binge in on a spending spree. This tendency has to be forestalled by making available durables rather than consumables in the malls. The idea behind this rigmarole is to keep the purchasing power fairly at reduced level initially and then to bring it back to the previous point or a tad better.
As there is a big current of money flowing to and fro various sectors of the domestic economy spotlight will now be focused on the bedevilled geoeconomics prospects abroad. The domestic economic growth must be translated into exports mainly and sizeable imports of inputs must go towards facilitating export drive.
A good example is to concentrate on the pharmaceutical industry. The obvious connection between hospital and pharma would not escape your attention. Capital expansion takes place at the previous pharma site by demolishing old lapidated structure and erecting a state-of-art new factory producing ground breaking pharma products warehoused under cooler and hygienic conditions in order to maintain quality as well as the integrity of these products.
The crux of the matter is how quickly one gets into the bandwagon so that rivals can be beaten at close quarters. Undoubtedly pharma is one industry that showers geoeconomics muscle to even a small country like Switzerland. There cannot be a better time than when a country is placed at economic war footing to achieve these twin aims of improving domestic economy and geoeconomics prospects abroad.
Cheers!
Muthu Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677
E-mail: cosmicgems@gmail.com
Blog: Business Strategist
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