Opinion / Columnist
Let's apply moral suasion in our economy Now!
25 Mar 2015 at 12:14hrs | Views
The consistent and gradual reduction in prices of goods and services by various players in the economy is commendable. This is a positive signal to usher in the desperately needed sanity in our economy's recovery path.
At this point in time it is imperative that we apply ‘moral suasion'. This is a term used in the economy to persuade banks and other players in the economy to keep to official guidelines on positive requirements for a stable economy.
The 'moral' aspect comes from the pressure for the dictates of 'moral responsibility' to operate in a way that is consistent with the need for furthering the good of the economy. Our country needs this level of responsibility to react to the economic drivers which prop-up positive re-alignments in our economy.
This policy is on record for success in various countries such as Japan, US and Australia. It is popular for exercising the persuasive power of talk rather than legislation.
The corporate world is, therefore, challenged to cast attention on this aspect so as to effect a difference to the local economy. Bakeries, Delta Zimbabwe, mobile phone operators, transport sector and banks should be praised for taking the lead in reducing charges on their products and/or services. The other sectors are urged to follow the example projected by their counter-parts. This would facilitate stabilization in the economy.
The obvious sure case is that, this adds more buying power to all citizens who will be enhanced to spend more. This has a direct effect of causing an upsurge in the manufacturing sector which in turn can realize a growth or resuscitation of the industries which are in recession.
Most ordinary citizen, like the elderly pensioners and the unemployed, would find to survive if all prices are reduced in earnest.
The success of our economic recovery processes is dependent on the goodwill of all stakeholders that include investors, workers, government, and consumers. So there is an imperative need for a strong social contract to safe-guard our public interest.
Source - Suitable Kajau
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