The devastation created by COVID -19 pandemic is well known. But it is not the first crisis that humanity has faced. This crisis will also pass. Meanwhile, it is important that you hang tight, and take care of your lives and livelihoods.
COVID-19 had turned our lives upside down. The genesis of COVID-19 pandemic is unique in the sense that it is both a health and an economic problem. It not only causes untimely deaths but also makes it risky for humans to come near each other. Therefore, in addition to the health challenges, COVID-19 makes the current transportation systems unusable, and workflows unsuitable. Many countries are under lockdowns. The economic activities are severely curtailed, affecting the livelihoods of millions of people.
The governments worldwide are contemplating on whether to continue with the lockdowns to protect lives or to ease them to allow economic activities and provide livelihoods. The situation has provoked a debate on a very unusual topic of lives Vs livelihoods.
The Silver Linings
Many may argue that the world was not ready for COVID-19. One can also say that we were better prepared now than before. The smartphones and the internet help us communicate better and save lives today. Social distancing is made possible by the online supplies and home deliveries of essentials. Homeworking is much more feasible for a lot of people today than ever before. We can access all kinds of media sitting at home, and the schools can, to a certain extent, teach our children online.
The world has witnessed many crises before. We survived the plague, the Spanish flu, the World Wars, the Great Depression and the financial crisis of 2008. As JMSB Cayanan mentioned in The Legend of the Seven Crystals, everything will come to pass. Pope Francis reminded us in his pre-Easter interview that COVID-19 is not humanity’s first plague.
“COVID-19 represents a chance for creativity and positive change. Perhaps, one day it will be good to remember these things too.” : Pope Francis
What do I do when my job is at risk?
Even as we look to the future with hope, most of the economically active population are concerned about the loss of employment or sustaining their businesses in the current circumstances.
Across the globe, working populations are adversely affected. Some have their working hours curtailed; many others have their salaries decreased. Very many find that their jobs have entirely disappeared. With the salary income disrupted unexpectedly, it becomes tough to support oneself and family financially.
As a way out, those who are eligible for unemployment dole can access it. Those not entitled to unemployment support will find it more challenging.
Hang tight. Look at your finances very carefully and minimize your spending. Use the flexibility offered by the banks and the utility companies in planning for the payment of your mortgages and bills. In some countries, evicting tenants for non-payment of rent during COVID-19 crisis is considered illegal.
More importantly, update your resume and wait for the earliest opportunity to apply for a job. Remember, labour is one of the factors of production. The world cannot manage without an efficient workforce. It is only a matter of time before the jobs are restored.
How do we, as a business, survive till COVID-2019 is controlled?
With no or minimal economic activity, what can the businesses do till the pandemic is controlled?
Honestly, nobody seems to have a complete answer. What we do know is that COVID-19 is a global problem, and therefore, there are some common solutions. In the short-term, you can review your cash position and estimate what amount of cash is likely to come in and what amount you are required to payout. Bankers call that a cash flow statement.
The question then is: How do you tackle the shortfall in the cash-flow? You talk. Talk to everyone you owe money. Explain the situation and work out a realistic payment plan. You will find that the creditors are ready to renegotiate the payment terms. They know that your production and sales are affected, diminishing your ability to pay. The governments, banks, tax bodies, suppliers, employees and shareholders are prepared to compromise. They all know that in the current circumstances, it is better to collect what they can, rather than forgoing the entire amount, which is the next possibility. One condition: Be very honest. You will find that every creditor will agree to a reasonable, honest payment plan.
Furthermore, look for any possible sales opportunity, even at a reduced price. Keep the cash flowing, whatever little that is.
Have Faith in Human Capabilities
In these times of crisis, you must retain your faith in human capabilities. Our health research institutions will find an effective treatment for COVID-19 sooner than later. It is reported that a vaccine for COVID-19 will be in place in about a year.
Hang tight. The world is working on how to sort out COVID-19. Save lives and try your best to save the livelihoods. Human ingenuity and innovation will address the challenges thrown in by COVID-19 as well.
