economic crisis and business
economic recession and business
The global economic recession began suddenly from the United States of America, Being the world controlling nation it spread to all other country including Africa. I will be using my country Nigeria as a case study. Due to the on going global economic recession, a lot of workers have been retrenched from there work places. Under- employment and Unemployment is the order of the day. Most families in Nigeria consist of a father, mother and maybe six children with extended relatives, so imagine the bread winner of that house loosing his job there will be chaos in that family.
The economic global recession hit the stock market so hard that a lot of companies have been wiped out. It devalued our currency, the exchange rate is presently $1 (one dollar) to N200 (two hundred naira) but before the recession it was $1(one dollar) to N130 (one hundred and thirty naira). Some of the worlds controlling powerful men have also been affected for example Bill Gate (America), Dangote (Nigeria),
Crude oil being 90% of our source of revenue has also dropped. Deficit financing is going to be the order of the day because the federal government will look for alternative means of financing his budget either by increasing taxation or concentrating on agriculture.
The standard of living has also dropped because with the ongoing recession not many Nigerians can afford a three square meal there by causing starvation to be on the increase. The educational standards will also drop because of unemployment. Parents wont be able to pay for there child’s education’s
In essence when the state of the economy hits home these are thing that are bound to occur; there will be increase in unemployment, there will no less labor force (underemployment), due to unemployment the crime rate in the country will increase, the standards of education will drop because parents wont be able to pay for the child’s school fees. The gap between the rich and the poor will widen and this could bring about an autocratic community. The present economic recession, when it hits home will increase poverty in the land due to high price in food stuff and low or no salaries. There will be diseases all over because citizens won’t be able to afford food stuffs.
I am hoping this economic crisis comes to an end quickly because it is affecting alot of business and life in the developing countries(Africa). I know it will also be hard felt in the developed countries. I am really hoping for a divine intervention. Wishing our leaders the best in the 2009 london summit.I am hoping a lot be achieved at the summit.