Architects Of A Resilient Economy

ATTRIBUTED TO WORLD ISLAMIC ECONOMIC FORUM (WIEF) FOUNDATION

To achieve economic resilience, like everything else, requires people. To be more precise, a workforce. Interestingly, key findings of a study done by The Conversation, an Australian not-forprofit media, show that areas with a majority of the workforce between the ages of 25 – 45 years old have lower resilience and this suggests a more experienced workforce can better help their economy bounce back. The same study discovered that having a more highly educated workforce doesn’t guarantee resilience. However, a larger percentage of self-employed workers is ‘unambiguously associated with greater resilience.’

PERSONALITY OF RESILIENT ENTERPRISES

When the global economy is at a low, a typical strategy is to tighten belts and reduce costs. However, this alone isn’t effective to survive negative economic shocks. In fact, to build economic resilience requires a blend of processes.

Recent studies from both business and academia, according to Deloitte’s article on Building Business Resilience to the Next Economic Slowdown, identifies three areas that are vital in ensuring that survive a downturn and use the unfavorable conditions to their own advantage:

1. Anticipation capabilities and collateral pathways

Ability to anticipate the unexpected before others do is essential for resilience. Thus, it ensures an enterprise to have a backup plan and be able to adapt to a current situation, as well as absorb the shock and think ahead

2. Availability of a broad set of resources

A fundamental component when it comes to reading for an emergency is financial resources that are needed to activate other key resources such as human capital which can bolster successful recovery from a shock, and advanced use of information as well as communication technologies which boosts efficiency and competitiveness.