Many are optimistic that the business situation all over the world would improve with the easing of restrictions imposed to combat the spread of Covid-19. This could be true, but there is another picture that is emerging which shouldn’t escape our attention – that many are happy with the pandemic and are even enjoying it as the coronavirus has been used to cover up many negative things and scenarios, which include bankruptcies and debts.
Whoever thinks the coronavirus impact will not linger after the pandemic ends, as some studies and comments have indicated, is wrong. The reason is that what has been pumped into the markets still constitutes only 20 percent of the demand, as the world needs at least 15 trillion dollars to overcome the disastrous effects of this pandemic.
This calls for some urgent action. World leaders and governments must take the private sector more seriously, because problems in this sector will have a direct impact on people. It will also have its negative impact on the security and stability of countries. Businesses are facing many financial and administrative problems due to the current pandemic, pushing many of them into losses and bankruptcies that cast a shadow over the society.
Private sector plays a major and pivotal role in the comprehensive development process and contributes to revitalizing economic life, thus increasing growth and reducing poverty. For this reason, governments must identify high-priority issues that hamper the private sector development and performance. Governments must adopt a comprehensive view and look at appropriate indicators to understand the investment climate and generate economic growth to boost the labour force.
In the light of this situation, businessmen’s advice to governments is to reassess and review the support packages designed to counter the effects of the pandemic, and amend the procedures so as to help companies to fulfill their obligations. If urgent action is not taken, the corridors of courts will be filled with owners of companies who are unable to meet their obligations, forcing judges to sentence them to imprisonment which will create social crises. Such a situation will only increase the pain of the private sector and lead to disruption or slowdown in national production, at the very least.
Accordingly, governments must take leadership of the international system, as shareholders, and take the following measures: Review the cash supply and pump large amounts of money through new packages and projects in which the private sector works to help and improve the situation and thus overcome this crisis; they should look to the private sector as a key partner in development, increase facilities and ease credit restrictions for them; grant a period of more than two years in order to accelerate development, amend legislation and procedures to help them cope with the crisis, increase and spread awareness and financial knowledge among private sector owners by establishing a central consulting unit and enhance confidence and help them make the right decisions and manage risks.
Such measures will be the best bet at this stage to maximize capabilities and capacities and reduce risks. This can limit the damage from Covid-19.