The Opportunity for Change for Businesses After the Covid-19 Era

After the Covid-19 era, opportunities arise for both governments and businesses. More specifically, governments and businesses, respectively, operated in isolation, before the onset of the pandemic, resulting in unsustainable economies and societies dependent on state support.

Governments can now create stronger, more resilient, and more just societies. On the other hand, companies can advance this vision by providing stable jobs, sustainable economic growth and a strong presence locally and internationally. Together, governments and businesses can simultaneously create growth-driven economies and inclusive societies.

There are five guiding principles that can help governments and businesses alike build a more effective partnership.

1. Creating and communicating a national vision with roles, responsibilities and expectations for all stakeholders. Everyone has a role to play in this vision, while businesses of all sizes must participate in the transformation plans of the productive model of the economy. They have to contribute to the creation of a workforce with modern skills that creates added value in production.

2. At the same time, the individual strategies in each sector of the economy are equally important. However, these should be targeted or modular, avoiding holistic horizontal approaches. In any case, the participation of the productive forces of the country in the planning is a precondition for the effective implementation of the vision.

3. Ensuring the growing involvement of the private sector in social issues. Social issues – which are still considered the exclusive responsibility of governments – have also entered the business agenda, as society begins to require businesses to use their resources and influence to bring about positive social change.

For example, it is the ESG criteria that influence entrepreneurship and business decisions.
They enhance the interest of companies themselves to get involved in social issues. In this context, governments and businesses must seek new formulas for cooperation to take advantage of this fundamental change.

4. Strengthen the creation of new communication channels. In order for governments and businesses to work together, they need to re-evaluate, create, or strengthen their channels of communication. Round tables, link structures and other modern digital solutions with wider application should be utilized to ensure an active and effective dialogue.

In any case, which dialogue framework and the means to be used are not enough. Building a relationship of trust and an open communication environment between governments and businesses is a prerequisite for success.

5. Targeted use of financial support and incentive mechanisms. Government interventions and aid bring significant benefits and prospects for both the medium and long-term economic activity of a country. However, governments must be careful not to overburden the small or emerging productive units of the economy with overfunding and create conditions of dependence on it.

At the same time, the evaluation of support programs should shift from monitoring absorption to monitoring key productive indicators, such as GDP growth and value added, employment growth, upgrading human resource skills, so that governments and companies to understand the result of their investments.

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TRUST ECONOMICS

Trust Economics is a specialized independent economic research, analysis and consultancy business. Our team provides ingenious analysis in the macro & micro economic field, in the field of financial market, regional and sectoral analysis equally, forecasts, consultancy, specialized studies-research/projects from its headquarters in Athens, Greece.

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