Tuesday, November 10, 2009

Inverting Stereotypical Apprehension on Recession

The world perilously suffers from continues economic breakdown. Part of industrialization is the cost of natural or agricultural resources. Definitely almost all of the factories that had come into existence had made their refineries and other source outbreak through the help of the natural resources we have. Coal for example had explicitly overwhelmed the industries all over the globe. The Philippines in particular could not have been affected directly by the most controversial global financial crisis. It is plainly because mostly, the source of living in the Philippines depends on agriculture. Meaning, it is not a money-based industry, but an agricultural one.

Recession as part of the economies life cycle is the alarming part which activates stimulus to commercial people. This is where the turning point of the industries is located. When supply overrides demand it results to dislocation of the business systems. This would slow down the marketing process cutting the income down and worst is to slide down into regression and never recover again, Bankruptcy. In recent business years, few business hotels and tourist spots in Europe had decreased their marketing prices including accommodations and services. In the Philippines, United States-based logistics Federal Express (FedEx) had closed their hub in the northern side of the Philippines. The company had transferred the hub to Guangzhou, China and started new operations there. This would mean another case of unemployment in the Philippines; in fact it is about 500 hundred workers whose about to lose their job. This means another recession in the economies employment field and thus, trimming down another percentage in the consumption.

Though recession may be lethal to the economic development; it somehow works on moving on the inverse proportion. The Philippines has been affected by the impact of the financial crisis and it had brought slight tension to possible economic harm. It is however great that this may lead to possible agricultural focus on development. Dr. Ines Smyth, Gender Adviser of Oxfam International said as quoted in the Philippine daily inquirer “This is an opportunity to revise investment fundamental policies like investment in agriculture”. The better we process raw materials, the bigger chances that we survive a persisting financial crisis. There are on the other hand clever initiatives for financial crisis. India for example, India's Prime Minister, Manmohan Singh commits for a financial reform. The reform agenda includes developing long-term debt markets, a corporate bond market, strong insurance and pension sectors and future markets. This makes another initiative in exterminating the fear of the society for economic breakdown.