ONEROUS RESPONSIBILITIES OF CORPORATE LEADERS
Posted by Iyke Ozemena on December 23, 2009 at 12:00pm
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ONEROUS RESPONSIBILITIES OF CORPORATE LEADERS Iyke Ozemena Arttorney Cor[prate Consultant Author

The role of national and corporate leaders is essentially economic management. Corporate Leaders Board enlists people across the globe who are concerned about economic management. Global activates hinge on this issue; just as much as lives of everyone is dependent on the economy.

Recently the world experienced depression to such a level that was beyond the 1930s. Those who were not sufficiently aware of the 1930s depression learnt huge lessons from 2007. Blames? yes, quite easy to find someone to blame. Even to blame you need to be enlightened to know who to blame. But if you’re like the ordinary folks you blame the ‘corporate leaders’. If you’re a corporate leader this the place to offer defense of that allegation or explain why you should be exonerated from the rest.

It’s already common knowledge that political leaders who manage the economy of every nation are ofte recruited from the political class. In many countries political class include corporate leaders within state instiutions, and private institutions. These people have their ideological persuasions. It is their background which is now universal that largely determines which direction the economy of their nations, a fortiori global economy moves. A little distinction is necessary. With the acquisition of management skills and communication many economies have witnessed tremendous growth; while lack of these skills seem to be responsible for the setbacks. that’s what makes the economy of every nation unique.

The econimies of nations are unique in another dimension i.e the endowment of natural and human resources. That’s where the challenge lies. A challenge that tasks the skills and talent of leadership at all levels. Naturally the less endowed the economy the more desperate the need to assemble the very best and talented crops of human resources available to manage the economy. This alone does not determine substance of the interms of GDP, standard of living, per capita income etc which indices are combined to assess the health of any economy.
http://en.wikipedia.org/wiki/American_Recovery_and_Reinvestment_Act…

Hence the interaction between these national economies vide exchange of trades, bi-lateral agreements, socio-political cooperation put pressure such that unless there is balance of trade and cooperation, any economic crisis sparked off by one sends unlimited ripple effect until stability is restored by international community.

The global economic crisis of 2007 was triggered off by consumer credit default especially from the mortgage sector. There were defaults and foreclosures quickly followed by crash! This was a classic example of failure of the principle of responsible lending and borrowing. Apart from certifying that corporate leaders were responsible or so was claimed by almost everyone, this paper seeks to explore what leaders did or failed to do, to return the global
economy to normalcy.

No sooner the foreclosures took their tolls than the banks began their trembling and fall. Very soon the managers of Wall Street became nervous as they look around for solution. Indeed this level of economic managers were the first to give notice to the public and government that something was wrong with the economy. It was opportuned time for leadership of private sector to come together to find the causes of the problem and solution.

By this time the limit of the leadership at national level had been overstretched and evidence of failure was apparent. it became imperative that intervention must be global, since the problem has been identified globally.

Individual nations preferred solutions suited to its economy. However international leaders came together under the auspices of G8 and G20. USA hosted G8 early 2009 while UK hosted G2 in April 2009. the outcomes of these global conference were not quite spectacular, although it depends from what angle you look at it.


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The first issue was the recognition of these groups that the crisis has taken toll on the global economy. Major economies like USA, some European countries had lost 6% capital appreciation at the various stock exchanges.

The second issue was to consider how to rescue the position positively. This led to the position taken by these groups that growth of 2% annually was realistic goal, that was early 2009. Later there were other global attention
by UN economic groups, and global environmental groups who gave views on how to move global economy forward.

The policies put in place by countries are essentially stimulus. the rationale is to allow every aspect of the economy
to remain active and generate resources. With this job losses would be reduced and stemmed. Meanwhile the outlook of the economy seem optimistic even though it was thought to be far worse than in the 1930s.

Perhaps the most critical manifestation was the erroneous assumption that depression was the ailment suffered globally in 1929. And what does that mean? That would be discussed shortly; but a caution is apt because it is not an academic lecture. The point I want to pass across is that there are various opinions about ‘economic depression’. Since this is online business class where we discuss online money making techniques and the inhibitions to our set goals, the economy today would be more relevant than the theoretical background information for academic exams But you do know that sometimes the most difficult thing is to draw a strict line between academic and non-academic
dissertation; they sometime mingle. So the setting is more internet/entrepreneurial, homemakers training programme.

Economic depression in 1929 was a failure by the global economy to consume accumulating goods and services due to exhausted purchasing power . That continued with its vicious cycle until the crash. It continued until solution
gradually solution came. I would talk about this later in a different format Government deficits were low. However, the global economy were divided between Western economies organized around free market system and the East communist nations.

However in 2007 the economic depression that manifested is failure of global economy to pay for its high appetite for consumption. If you like bloated purchasing power that government has without commensurate productivity the economy would burst. Sorry,if that does not represent your view. This is serious. Start with home ownership which is a fundamental right. The mortgage institutions with Lehman Brothers leading showed that individuals as well as institutions failed in their obligations to be “responsible borrowers” towards their “responsible lenders”. Followed by Wall Street and Stock Exchange which has global inter-connection. At this time the world economy was down with ‘influenza’ that metamorphisized to ‘depression’. The US government started bailout with Reserve U.S. Government Fund 2007 (AIG) to Money market funds with add-up total of $3 trillion http://www.nytimes.com/interactive/2009/02/04/business/20090205-bai…

http://en.wikipedia.org/wiki/American_Recovery_and_Reinvestment_Act…

So identifying their differences took quite some from 2007. This was responsible for the long time it has taken world leaders to bring solution to the lingering economic melt-down. What has the world lost? Speed! If the common approach was not adopted even by G8 and G20 conferences the world economy would have gained speed in recovery.
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COMPANY SECRETARIES’ HANDBOOK (Kindle Edition)

Iyke Ozemena Attorney Corporate Consultant Author

Iyke Ozemena Attorney corporate consultant

Courtesy of: article submitter brad callen